Fed Freezes Rates, Warns Inflation Storm Ahead

Fed Freezes Rates, Warns: Inflation Storm Ahead?

  • Fed Freezes Rates : The U.S. Federal Reserve kept interest rates unchanged at 4.25%–4.50%.
  • The Fed still expects two rate cuts in 2025, but the timeline is now slower.
  • New economic forecast:
    • Growth in 2025: 1.4%
    • Inflation: 3%
    • Unemployment: 4.5%
  • Trump’s proposed tariffs could cause a major inflation surge.
  • Fed Freezes Rates : Fed Chair Powell warned consumers will bear the brunt of rising prices.
  • Without tariff concerns, rate cuts might already be happening.
  • Seven out of 19 Fed officials believe no cuts will be needed at all.
  • Inflation may stay above 2% through 2026, drop to 2.1% by 2027.
  • Rate cuts likely after the Sept 16–17 Fed meeting, if data supports.
  • Powell dismissed political noise: Trump called him “stupid,” but Fed remains cautious.
  • Fed chose not to include Israel-Iran conflict or oil spikes in rate decisions.
  • Markets stayed calm: stock indices flat, Treasury yields stable.
  • Powell: “We’re in wait-and-watch mode. We’ll react as we learn more.”

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