#FOMCMeeting: A Summer of Expectations and Economic Change
All eyes are on the June FOMC meeting: as expected, the Fed kept rates steady at 4.25–4.5%—the regulator remains patient amid uncertainty and new tariffs. Inflation in May ticked up slightly to 2.4%, but the labor market is still holding strong despite a slowdown in job creation.
The Fed signals: it’s in no rush to change policy, preferring a “wait and see” approach. The updated dot plot is in the spotlight: now, most committee members see at most one or two rate cuts by year-end, even though more were expected back in spring. Key risks include Trump’s tariffs, oil price swings from Middle East tensions, and political pressure on Jerome Powell.
Markets have adjusted: no big changes are expected before autumn, and the Fed’s next moves will depend on fresh inflation and employment data. This summer is a time of high expectations and cautious forecasts. Stay tuned for updates—September could bring the next big shift!