Fed's Unofficial Spokesperson Timiraos: "Not Ready for a Rate Cut This Week... Divisions Within Fed"

Nick Timiraos of The Wall Street Journal, known as the 'unofficial spokesperson' for the Fed, forecasted that there would not be a rate cut this week.

On the 29th (Korean time), Timiraos said on X (formerly known as Twitter), "Fed officials ultimately look likely to resume rate cuts, but they are not ready at this meeting," adding, "The points that divide them are which evidence to prioritize and whether waiting for it would prove to be a mistake."

Timiraos also reported that the Fed is currently split into three camps. He explained, "When concerns arose about inflation rising again due to tariffs, the Fed was united, but as tariff-related inflation turned out milder than expected and there are signs of easing employment, divisions are appearing within the Fed."

Meanwhile, attention is focused on whether Jerome Powell, Fed Chair, will hint at a possible rate cut in September during his press conference scheduled right after the FOMC (Federal Open Market Committee) meeting on the 31st. Timiraos said, "In the next few days or weeks, we should watch whether Fed officials will lay the foundation for a rate cut at the next meeting."