Federal Reserve keeps prime lending rate steady for consecutive third instance.
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Are you in the loop on the latest with the Fed? Let's break it down: The Fed's statement says the economic uncertainty has skyrocketed due to the heavy-handed tariffs thrown around by the White House. They're worried about higher unemployment and inflation rates. But luckily, the job market's been steady-as-she-goes and unemployment rate's been low, despite a bit of inflation.
Fed Chair Jerome Powell ain't rushing to lower rates to meet President Trump's demands until there's more clarity on the trade policy. Trump's been barking orders at Powell to lower interest rates since April, even going as far as calling him a "big dummy" on social media.
Currently, the rate's been at 4.25-4.5% since December 2014. The Fed's decision lines up with expectations, with a 97% probability of the rate staying put, according to CME's FedWatch tool.
While Reuters says this meeting was the last with a clear-cut outcome, most economists think the Fed'll ease up on rates in 2025. The next meeting's scheduled for June 17-18, but most economists and investors don't expect any rate cuts at the June meeting, according to Bloomberg.
But what about them economic indicators, you ask? Well, the economy's still chugging along at a solid pace, and the unemployment rate's hanging steady. Inflation's been a bit elevated, though.
Given this info, the Fed's likely to keep a cool head and take a "wait and see" approach for now. If things take a turn, they might adjust rates accordingly. But it's all about how the indicators and trade policies evolve between here and the meeting.
So, what's gonna happen in June? That depends on the economic and trade policy landscape. For now, it seems like they'll stick with the status quo, unless some major changes pop up. Keep your eyes peeled for those unexpected twists!
Wanna stay updated on all things Fed? Follow our Telegram channel @expert_mag for the latest scoop.
Pro tip: Remember, it's hard to predict the Fed's every move, but factors like economic uncertainty, trade policies, and inflation play a big role in their decision-making.
- The Fed might maintain the elevated interest rates until 2025 due to uncertainty caused by trade policies.
- If finance and business stakeholders are keeping an eye on the latest with the Fed, they should be aware of the potential for elevated uncertainty and the impact it could have on interest rates.
- In 2025, it is expected that the Fed will ease up on rates, given the current economic conditions and uncertainty surrounding trade policies.
- As of the Fed's latest meeting, there is a 97% probability of the rates staying the same, but this decision could change if indicators and trade policies shift significantly before the next meeting in June.
