The central bank remains cautious, even as calls for rate cuts grow louder from the White House and other policymakers.

CNBC's Rick Santelli discusses the bond market, U.S. government budget, potential impact of tariffs, interest rate outlook and more with Jerome Schneider, head of short-term portfolio management at PIMCO.

Russell Vought, director of the Office of Management and Budget, said Federal Reserve Chair Jerome Powell "has grossly mismanaged the Fed."

Federal Reserve officials diverged at their June meeting about how aggressively they would be willing to cut interest rates, split between concerns over tariff-fueled inflation and signs of labor mark

The research, co-authored by New York Fed President John Williams, tracks how the risk of reaching the zero lower bound—the point where interest rates are at or near zero—has changed over time. It turns out that the probability tends to rise when economic uncertainty increases.