#FOMCMeeting š§ I Spent Hours Digging Into Fed Policy ā Hereās What I Found š
Everyoneās talking about rate cuts ā but Wall Street doesnāt think theyāre coming anytime soon, and hereās why š
š After analyzing economic reports, Fed statements, and tariff news, I found that:
ā Inflation is cooling
ā Consumer sentiment is up
ā Unemployment is stable at 4.2%
Sounds perfect for a rate cut, right? But not so fast.
š« The Fed is on hold ā and hereās whatās holding them back:
1ļøā£ Uncertainty about H2 2025
Former Fed official Loretta Mester said: āHard data looks good, but we donāt know how the second half of the year will go.ā
2ļøā£ Trump Tariffs = Inflation Risk
⢠10% baseline tariffs still active
⢠China could face 55% tariffs
⢠Canada, Mexico, and autos are still under pressure
⢠Yale research says Chinaās effective tariff rate is ~33%
3ļøā£ Fed Wants Clarity
Before cutting rates, the Fed wants to see how:
⢠Tariffs affect inflation
⢠Fiscal policies impact job growth
⢠Global trade stabilizes
š§ My Take:
The Fed is walking a tightrope. Markets may want cuts, but policymakers donāt want to move too early. Volatility ahead is very likely.
š If youāre trading:
⢠Watch for macro news headlines
⢠Stay risk-managed
⢠Donāt over-leverage expecting an instant rate cut rally