Federal Reserve Governor Christopher Waller advocated for a 25 basis point rate cut in July, citing rising economic risks and sluggish growth nearing 1%. He cautioned that postponing a cut could lead to more aggressive actions down the line. Pointing to labor market weakness, Waller also noted that upcoming tariffs are likely to have only a limited and short-lived impact on inflation, with long-term inflation risks remaining subdued.

Meanwhile, Fed member Mary Daly commented that expecting two rate cuts this year is reasonable, but argued that focusing specifically on July may be asking the wrong question.

On the consumer front, U.S. retail trade sales climbed 0.6% in April 2025, reaching $720.1 billion, a 3.5% rise year-over-year. Retail and food services followed a similar trend, also growing 0.6% monthly and 3.9% annually. Compared to April 2024, non-store retail sales rose 4.5%, while food services and drinking places posted a robust 6.6% gain. Total sales for the April–June 2025 period increased by 4.1% versus the same period in 2024.

Check out today's market analysis for more updates.