US Edition‘Purgatory:’ Fed Officials Left in Limbo as Tariffs Complicate This Week’s Rate Decision
- Federal Reserve officials held a two-day policy meeting from June 17-18, 2025, in Washington, expected to keep interest rates steady at 4.25-4.5%.
- The meeting occurred amid uncertainty driven by trade tariffs imposed earlier by the Trump administration and a methodology shift last year from phone to web-based surveys affecting inflation expectations data.
- Officials face mixed signals: inflation is at 2.1%, near the Fed’s 2% target, unemployment remains historically low at 4.2%, yet inflation expectations show dramatic disparities and global tensions add to uncertainty.
- Fed Governor Christopher Waller noted significant inconsistencies in measures of inflation expectations, while last week Trump criticized the Fed chair, labeling him a "numbskull" for not lowering interest rates.
- The Fed is widely expected to hold rates now but may cut its key rate twice in 2025 after quarterly projections signal accelerating inflation and a slight rise in unemployment.
54 Articles
54 Articles
The Fed’s decision on interest rates is due this week, but tariffs have officials stuck in limbo
The U.S. economy is mostly in good shape but that isn’t saving Federal Reserve chair Jerome Powell from a spell of angst.As the Fed considers its next moves during a two-day meeting this week, most economic data looks solid: Inflation has been steadily fading, while the unemployment rate is still a historically low 4.2%. Yet President Donald Trump’s widespread tariffs may push inflation higher in the coming months, while also possibly slowing gr…
The Fed's got an interest rate decision to make
The Federal Open Market Committee meets later this week, and it’s pretty likely they’ll examine why tariffs didn’t drive inflation up in May. The good news? A slew of economic data coming out this week could clear things up, and help them make an interest rate decision. Also in this episode: Other central banks have June meetings on the books, domestic steel production ramps up under tariffs — but steel jobs don’t — and Halloween came early this…
Coverage Details
Bias Distribution
- 67% of the sources are Center
To view factuality data please Upgrade to Premium
