Will the Federal Reserve hold off on rate cuts in 2025 due to rising inflation risks from U.S. tariffs?
Lazard's Chief Market Strategist, Ron Temple, thinks so — and his bold prediction is shaking up market expectations.
While most investors anticipate multiple rate reductions next year, Temple warns that expanding tariffs could fuel inflation, forcing the Fed to keep rates steady even if unemployment rises. This divergence in views has sparked intense debate among economists, with some backing Temple's caution and others betting on rate cuts to support economic growth. As markets swing on every inflation report and Fed announcement, businesses and consumers alike are bracing for higher costs and tighter budgets.
Dive into this deep analysis ( Titled Will the Federal Reserve Hold Rates Steady in 2025? The Inflation-Tariff Wildcard ) of how tariff-driven inflation could reshape monetary policy, impact your investments, and influence the broader economy in 2025.