Despite a decline in the inflation rate, the Federal Reserve is focused on a 2% target, making imminent rate cuts unlikely. High mortgage rates continue to stagnate the housing market. Economists express concern about President Trump's aggressive trade tariffs, particularly the introduction of new tariffs on steel and aluminum, which may lead to increased prices for homebuilders and uncertainty in the housing market this spring. Moreover, while inflation shows slight improvement, this does not immediately justify rate cuts, though flexibility may exist for future adjustments.
"With inflation where it is currently, it is a near certainty that the Federal Reserve will not cut the federal funds rate when they meet next week."
"Economists fear that the uncertainty alone will result in U.S. homebuilders and other companies raising prices just to be safe."
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