A divided Federal Reserve does not anticipate an interest rate cut before early 2027, according to minutes from the Federal Open Market Committee’s June meeting released Wednesday, as a renewed conflict in the Middle East pushed odds of a rate hike by September to nearly 70%.
Fed Chair Kevin Warsh said he welcomed a “good family fight” over interest rate policy.
The FOMC, which unanimously voted last month to hold interest rates between 3.5% and 3.75%, expects no changes to the rate until a cut in Q2 2027, according to minutes published Wednesday.
President Donald Trump on Wednesday said an interim peace deal with Iran was “over” and the U.S. would “probably” hit the country with strikes again overnight, further saying he was “not sure” he wanted another deal, in remarks that briefly sent international oil benchmark Brent Crude above $80 again.
Equities also stumbled following Trump’s remarks: The Dow Jones Industrial Average dropped about 570 points, or 1%, and the S&P 500 and Nasdaq dropped 0.3% and 0.1%, respectively.
