The Federal Reserve kicks off its July meeting on Tuesday, with Fed Chair Jerome Powell set to speak on Wednesday and deliver the central bank's latest interest rate decision. Markets are largely expecting the Fed to hold rates steady,

The upcoming Federal Reserve meeting is under the spotlight as potential dissent looms from governors Christopher Waller and Michelle Bowman. Their stance aligns with former President Trump's call for interest rate cuts,

Under normal circumstances, a pair of dissents in favor of a rate cut would be taken as a sign the Fed is taking a dovish turn, Tom Essaye, editor of Sevens Report Research, wrote in a Tuesday note. It would be signal that policymakers are moving in favor of easing, making a reduction at the next meeting a more likely event.

The Senate banking committee’s top Democrat is calling on the Federal Reserve to throw out a proposed rule for the amount of money that big banks are allowed to borrow relative to their capital.

Bowman, who was appointed to the Fed’s board of governors by Donald Trump in 2018, is the second high-profile official to express support for a potential July cut in as many days.

"It's very important that we maintain our independence with respect to monetary policy," Michelle Bowman, vice chair for supervision at the Federal Reserve, said on Tuesday during a broadcast interview.

The Fed's rate-setting committee is scheduled to meet later this week as Trump continues to push for looser monetary policy.

The U.S. central bank, to President Donald Trump's chagrin, will likely leave interest rates unchanged at a policy meeting this week, but that's not to say there won't be a vigorous debate, with one if not two Federal Reserve governors possibly casting a rare dissent in support of lower borrowing costs.