Brace for dissent, US pandemic inflation still smoulders

One should expect dissent as the Fed gets closer to deciding when to cut rates, given the wide band of uncertainty over how tariffs play out, writes KPMG US Chief Economist Diane Swonk.

The United States (US) Federal Open Market Committee (FOMC) – the policy making arm of the Federal Reserve – is widely expected to hold rates unchanged at its meeting on 29-30 July. Inflation has picked up slightly, especially in some of the most tariff-sensitive sectors, while unemployment remains historically low. A flurry of economic data is due out this week, including the first estimate of GDP for the second quarter. That will provide insights into the June PCE inflation i...

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Authors: Diane Swonk

Published Date: 28 July 2025