Interest rate cuts are no longer easy for the Fed. With ongoing Iran conflict and volatile oil markets, it may even consider rate hikes to ensure inflation remains stable.
Data & financial journalist covering global economics and policy
Interest rate cuts are no longer easy for the Fed. With ongoing Iran conflict and volatile oil markets, it may even consider rate hikes to ensure inflation remains stable.
The Federal Reserve’s latest projections show steady economic growth, persistent inflation above 2% and a slower path to interest rate cuts.
The ECB cut its key rates by 25 bps effective June 11 after lowering its 2025 inflation forecast to 2%, with core inflation near target and modest GDP growth expected, but also cautioned against rising tariff uncertainty.
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.