While both the Bank of England and the Federal Reserve agreed to maintain rates in their June decisions, recent commentary from policymakers would suggest that the Federal Reserve could consider a rate cut in July, against broader market expectations.
Until this point, the Bank of England appeared the more dovish of the two, voting to maintain rates at a majority vote of 6-3 in their June decision. In a vacuum, this suggests that some members of the MPC are already in favour of cutting rates, unlike the Fed, which unanimously voted to keep rates unchanged.
This was the assumption until recent commentary from Federal Reserve policymakers surprised markets, revealing that both Michelle Bowman and Christopher Waller seem to, at least in part, support the notion of rate cuts in the upcoming July decision.
In one way or another, both governors seem to be increasingly less concerned about inflation, with Bowman reportedly shifting focus to the labour market instead.
