(AURN News) — The Federal Reserve held interest rates steady again, but here’s the real headline — it’s still planning two cuts before the year’s end, despite inflation ticking back up.
That’s a tightrope. Inflation is expected to climb to 3% by year’s end, up from 2.1% in April and well above the Fed’s 2% target.
Growth is slowing, unemployment is rising — and tariffs are back.
President Donald Trump’s new 55% China tariff deal may be lower than the 145% shock he announced in April, but it’s still a freight train heading straight for consumer prices.
Still, markets are betting the first rate cut will land in September, possibly sooner. Traders are now putting an 18% chance on a July cut.
That optimism is tied to cooling consumer prices. The Consumer Price Index rose just 0.1% in May.
The Fed’s message is mixed — growth is down, inflation is up, and only one rate cut is projected for next year.
Bottom line: Your credit card, loan, and mortgage rates may be getting a little breathing room soon, but inflation’s not loosening its grip just yet.
Click play to listen to the report from AURN White House Correspondent Ebony McMorris. For more news, follow @E_N_McMorris & @aurnonline.
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