"Let's get on with it," Federal Reserve Governor Christopher Waller said while backing a 25-basis point interest rate cut at next month's monetary policy meeting, as the odds of further weakening in the labor market rise.

The relatively muted move in rates comes against the backdrop of a legal clash between President Donald Trump and Fed Governor Lisa Cook. Some worry the fight could not only jeopardize the Fed’s political independence but may also lead to higher mortgage rates in the future.

The average rate on 30-year fixed home loans registered at 6.58% for the week ending Aug. 21, same as last week.

Bond investors are taking a “wait-and-see” approach to President Donald Trump’s attempt to fire Federal Reserve governor Lisa Cook.

Cook’s role is lower-profile than Powell’s, but law experts and former Fed officials tell Bankrate that firing her could carry the same dangers: weakening the Fed’s independence and ultimately costing consumers by raising interest rates — and prices.

The Fed responded by aggressively hiking the federal funds rate (overnight interest rate), taking it from its pandemic low range of 0% to 0.25% to a two-decade high of 5.25% to 5.5% over an 18-month period, which ended in August 2023. The goal was to slow the economy down, which, in turn, would cool inflation.

By Michael S. Derby (Reuters) -Federal Reserve Bank of New York President John Williams said Monday that the era of persistently low underlying interest rates does not appear to be over, based on his reading of the data.

Morgan Stanley has changed its forecast regarding a potential Federal Reserve interest rate cut next month. In a note dated Aug. 26, Morgan Stanley Chief Economist Michael Gapen joined a growing trend of global brokerages changing forecasts. This is due to Fed Chair Jerome Powell's recent shift in tone toward rising labor market risks.