Fed Officials Clash On Rate Cuts Ahead Of September Meeting

Two Federal Reserve officials offered diverging views on the labor market ahead of the September policy meeting, according to The Wall Street Journal. Investors had expected a September cut after weak July payrolls but have scaled back expectations in recent days. Cleveland Fed President Beth Hammack said inflation remains “too high and rising” and argued there is no reason to cut rates with the labor market “reasonably good.” Hammack, a nonvoting participant this year, opposed a cut in September, citing risks of fueling inflation through tariff pass-throughs. Boston Fed President Susan Collins shared inflation concerns but warned of weaker employment trends and said it may soon be appropriate to begin reducing rates. Collins, who has a vote, flagged consumer strain from tariffs and signaled openness to a cut depending on incoming data.