Most Fed Officials Still Wary About Cutting Rates Due to Tariff Uncertainty, Minutes Show
UNITED STATES, JUL 8 – The National Retail Federation warns tariffs and government policies are complicating retail forecasts as inflation may reach 3.4%, risking slower economic growth and higher unemployment.
- The Federal Open Market Committee is releasing minutes from its June 17-18 meeting on Wednesday at 2 p.m. ET, focusing investor attention on monetary policy.
- The meeting occurred before key events like the August 1 tariff threat by President Trump, leading to a divided Fed cautious about rate cuts due to tariff-driven uncertainty.
- Despite steady interest rates of 4.25% to 4.5% since December 2024, some Fed officials appointed by Trump have expressed willingness to consider cuts, while most remain hesitant.
- Trump imposed a 50% tariff on copper imports and threatened more levies, causing market disruptions and raising concerns that high Fed rates could harm a fragile labor market.
- These dynamics suggest the Fed may wait for clearer inflation and employment data before adjusting rates, with investors eyeing potential cuts later in 2025 amid ongoing tariff effects.
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Will Tariffs Thwart the Fed's Plan to Slash Rates? - Boston Real Estate Investors Association
Will Tariffs Thwart the Fed’s Plan to Slash Rates? In the intricate ballet of economic policy, central banks and tariffs perform distinct yet influential roles upon the global stage. The U.S. Federal Reserve (Fed), captivating audiences with its power over interest rates, recently signaled potential rate cuts. However, an unexpected actor—the introduction of tariffs—has emerged, […] The post Will Tariffs Thwart the Fed’s Plan to Slash Rates? app…
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