- 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%
- Growth in 2025: 1.4%
- 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.”
Rread More : Fed Holds Rates, Warns of Inflation Spike as Trump’s Tariff Plans Loom & Get More Discount offer on beauty Products visit mCaffeine Coupon Code .