🏦 Top Fed Official Backs July Rate Cut — What This Means for You and Your Clients

This week brought some big news out of Washington that could directly impact the conversations you’re having with your clients about rates, affordability, and timing their move.

On Thursday, Christopher Waller, a Federal Reserve governor and potential contender to become the next Fed chair, said he believes the Fed should cut interest rates at their next meeting on July 30 — and even signaled more cuts may follow later this year.

Why does this matter? Let me break it down for you.

Why a Rate Cut Now?

Waller argued that:
✅ Inflation is already close to the Fed’s target and not showing signs of running out of control — even with Trump’s new tariffs driving up some prices.
✅ The labor market is showing signs of slowing down, with hiring at private companies cooling and some indicators flashing what he called “red.”
✅ The economy is growing much slower than before, and waiting too long to cut rates could mean the Fed “falls behind the curve.”

In his words:
"We should not wait until the labor market deteriorates before we cut the policy rate."

What’s the Bigger Context?

President Trump has been putting intense pressure on the Fed — and specifically Fed Chair Jerome Powell — to cut rates aggressively (by as much as 3 points), which would be an dramatic move.

Trump even reportedly drafted a letter to fire Powell, calling him “Mr. Too Late,” though he later said he likely wouldn’t send it.

So while the Fed is expected to keep rates at their current 4.25–4.5% at this month’s meeting, Waller’s comments show there’s a real possibility of at least a modest quarter-point cut — despite most other policymakers favoring holding steady.

What This Means for Your Clients

Here’s how you can talk about this with buyers and sellers this week:
✨ Mortgage rates follow the bond market, which reacts to Fed moves and to economic signals. Even just the expectation of a cut can bring rates down slightly.
✨ A potential July cut — and the prospect of more cuts later — could improve affordability for buyers heading into fall.
✨ For sellers, this may bring more buyers back into the market, especially those who were sidelined by higher rates earlier this year.

My Take

We’re seeing a lot of uncertainty right now — between tariffs, a cooling job market, and political drama at the Fed. But one thing is clear: the Fed is starting to acknowledge that the economy may need support sooner rather than later.

As real estate professionals, staying informed about these trends helps us guide clients with confidence. Use this news as an opportunity to reach out to your sphere and educate them on what this could mean for their plans.

If you’d like help crafting client-friendly talking points or posts about this topic — just check The Realtor Hive app this week where I’ll also share some ready-to-go captions and graphics on this very topic.

Here’s to staying ahead of the curve (and the conversation)!

🐝 Jenny Aldrete 

Photo Credit: Brendan McDermid / The New York Times
Source: NYT — Top Fed Official Backs July Rate Cut as Trump Ramps Up Pressure