The Fed is holding off on lowering rates due to predicted inflation spike
From Yahoo Finance: 2025-06-24 15:14:00
The Federal Reserve is holding off on cutting interest rates due to expected inflation spikes. Chair Jerome Powell stated rates will remain stable until the impact of inflation is clear, which drew criticism from President Trump, who demanded lower rates. Powell cited economic uncertainty as a reason for caution.
Powell’s decision sparked ire from Trump, who publicly criticized the Fed chair’s stance on interest rates. Powell reiterated the Fed’s wait-and-see approach, noting that rate changes are contingent on economic trends. The Fed’s reluctance to cut rates has drawn backlash, with Trump and Vice President JD Vance advocating for immediate rate reductions.
Concerns over potential inflation increases from Trump’s tariff policy have led the Fed to delay rate cuts. The expectation is for a temporary price spike post-tariffs, but continued high prices are a worry. Powell anticipates the impact of tariffs to hit businesses and consumers this summer, prompting caution in rate adjustments. 1. In a groundbreaking discovery, scientists have found evidence of water vapor on an exoplanet located in a habitable zone. This discovery could have significant implications for the search for extraterrestrial life beyond our solar system.
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