The Fed Holds Rates Steady — Again. What’s Next?
For the fourth straight meeting, the Federal Reserve left interest rates unchanged, reinforcing its cautious stance even as inflation continues to cool. Chair Jerome Powell made it clear: more solid data is needed before considering any cuts.
The Fed’s latest 2025 outlook includes the possibility of two rate cuts, but no firm timeline was offered. Markets hoping for a clearer pivot signal were met with Powell’s reminder that the path forward depends on sustained evidence of disinflation and economic stability.
Meanwhile, former President Trump reignited controversy by calling Powell “stupid” and urging an aggressive 2% rate cut to jumpstart the economy. The remarks have stirred debate about political pressure on the central bank just months before the election.
With inflation softening but still above target, and growth showing signs of slowing, investors are left guessing: will the Fed deliver cuts later this year, or is a longer wait in store?
How are you positioning in this uncertain environment? Do you expect the Fed to begin cutting rates in 2025 — or will policy remain on hold into next year?
