Federated Hermes’s Steve Chiavarone crystalized the market’s view of where the Federal Reserve is heading on interest rates in one sentence.

A divide is emerging within the Federal Reserve about whether to hold rates steady for some time or get more comfortable about cuts later this year as officials try to determine whether any inflation coming from President Trump's tariffs will prove to be longer-lasting.

And most recently, the director of the Federal Housing Finance Agency joined the chorus, urging the Fed to resume rate cuts. But despite growing political pressure, don’t expect Powell or the central bank to act anytime soon,