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Why the case for a Fed interest-rate cut in July may be getting stronger

Why This Matters

Weaker labor-market data this week could bolster the case for the Federal Reserve to resume rate cuts soon.

July 2, 2025
07:16 PM
2 min read
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Advanced ➔ Results The TellWhy the case for a Fed interest-rate cut in July may be getting strongerWeaker labor-market data this week could bolster the case for the Federal Reserve to resume rate cuts soonPublished: July 2, 2025 at 3:16 p.

ETResizeListen(4 min)Federal Reserve Chair Jerome Powell (center) speaks alongside Michelle Bowman (left), vice chair for supervision, and Lisa Cook (right), board governor, at Federal Reserve Board meeting in Washington on June 25.

Photo: Agence France-Presse/Getty ImagesWeaker labor-market data this week could bolster the case for the Federal Reserve to resume interest-rate cuts soon.

“My view is that I do think the Fed should cut in July,” said Matt Brill, head of North America investment-grade credit at Invesco Fixed Income, pointing to cracks in the jobs market.

The Author Joy WiltermuthJoy Wiltermuth is a news editor and senior reporter based in New York. Show Conversation (0)Back To TopCopyright © 2025 MarketWatch, Inc. All rights reserved.

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FinancialBooklet Analysis

AI-powered insights based on this specific article

Key Insights

  • The Federal Reserve's actions could influence market sentiment across sectors
  • Financial sector news can impact lending conditions and capital availability for businesses

Questions to Consider

  • How might the Fed's policy stance affect borrowing costs and economic growth?
  • Could this financial sector news affect lending conditions and capital availability?

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