Data & financial journalist covering global economics and policy
Federal Reserve Chair Kevin Warsh could deliver a major surprise today as policymakers conclude their two-day meeting. While most economists expect the Fed to keep its benchmark rate at 3.5% and 3.75%, inflation and energy-price pressures may mean a hike is on the table. Warsh has been pretty vocal about his “no tolerance” stance for…
Persistently high inflation makes this reduction a tricky one. The interest rate cut is the first in Trump’s second term as well as the first in 2025.
Inflation fell to 2.3% in April. The Fed is keeping rates steady at 4.25%-4.5% as new tariffs fuel inflation risks, prompting a cautious wait-and-see approach.
The Federal Reserve keeps its interest rate unchanged, maintaining its target range at 4.25% to 4.5%. When the Fed sets a target for interest rate, it commits itself to adjusting the money supply. To lower the Fed Funds rate, the Fed’s bond trades buy government bonds, increasing the money supply which in turn lowers the…