Federal Reserve governor Michelle Bowman on Monday said the central bank should consider cutting its key interest rate as soon as its next meeting in July, underscoring deep divisions among Fed officials as they endure sharp criticism from the White House.

Now, with the most recent CPI reading (for May 2025) coming in at an annualized rate of just 2.4%, the Fed has penciled in two further cuts this year. Wall Street agrees, as the CME Group 's FedWatch tool also predicts two cuts by the end of 2025.

Is the Federal Reserve suddenly open to cutting U.S. interest rates as early as July? That’s what Wall Street investors want to know when Fed Chair Jerome Powell testifies before Congress this week.