While the U.S. economy demonstrates solid performance with low unemployment and diminishing inflation, the uncertainty surrounding President Trump's tariffs complicates the Federal Reserve's strategy. Experts anticipate that the Fed will maintain its key interest rate at 4.4% during its upcoming meeting, as projections suggest inflation could rise, impacting future rate cuts. Amid conflicting economic signals of potential inflation and increased unemployment, Fed officials emphasize the need for caution in decision-making, indicating they are prepared to wait for clear direction.
"The Fed is in 'an uncomfortable purgatory,' said Diane Swonk, chief economist at accounting giant KPMG. 'Without the threat of tariffs, we would be seeing the Fed cut.'"},{
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