The Federal Reserve cut interest rates, but uncertainty remains due to conflicting economic trends. Fed officials predict more rate cuts, but the path forward is unclear. Inflation from tariffs and labor market changes add complexity. Powell emphasizes Fed independence despite political pressure. The Fed faces tough decisions balancing inflation and employment stability. The dots plot signals a wide range of outcomes for rates and the economy. The Fed’s tough spot is navigating sticky inflation and rising unemployment. Political scrutiny grows as Trump criticizes the Fed for not lowering rates sooner. Despite challenges, the Fed remains committed to its independence.

Read more at Morningstar: Reading Between the Lines of the September Dot Plot