Fed on Hold Leaves Wall Street Asking What It Will Take to Cut Interest Rates
From Yahoo Finance: 2025-06-15 15:00:00
Federal Reserve officials signal no immediate rate cuts. Chair Jerome Powell’s comments this week crucial for insights on future moves. Big uncertainties around tariffs, immigration, and taxes need resolving. Israel’s attacks on Iranian sites add to global economic uncertainty. Economists expect no rate cuts until September at the earliest.
Fed policymakers meet June 17-18 with statement release and Powell Q&A scheduled. Tariffs could raise prices and slow growth, prompting a tough decision for the Fed. Economy stable for now, with no alarming signs. Unemployment steady, job growth slowing, but no intervention needed yet.
Inflation remains low, treasury yields drop on rate cut speculations. Officials await more data on tariff impact on consumers. Fresh economic forecasts and rate projections expected this week, with wide-ranging possibilities. Uncertainty over Trump’s policies could keep projections unchanged.
Timing of Fed’s next moves hinges on economic data reflecting Trump’s policies. Survey shows 42% of economists predict rate hold until concrete weakness appears. Rate cuts expected starting October or December due to labor market slowdown. Fed officials could adjust projections based on inflation expectations.
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