Summary:
White House unhappy with Fed’s caution, but Fed expected to keep rates steady Thursday; market worries tariffs may push inflation higher.
The Fed's June meeting
18/6/2025 (Wed)
Previous: 4.5% Forecast: 4.5%
The Feds widely expected to hold interest rate steady when policymakers meet Wednesday, even though the White House has been increasingly roiled by its wait-and-see approach.
Concerns are lingering that Trump's tariffs will reignite the high inflation that has fallen to within shooting distance of the target of a 2%. The FOMC will zero in on the results of ongoing trade talks.
The current projection for Q2 GDP growth in 2025, according to the GDPNow model, is 3.8%, according to a June 9 update. Potentially strong pace of economic expansion also refute the need of immediate action.
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