Institution: Fed Holds Steady in Wait-and-See Mode, Political Pressure for Rate Cuts Falls Flat
Svmuureported that Matthew Vegari, Head of Research at Clearwater Analytics' investment platform, stated in a report that the Fed's decision to keep interest rates unchanged at 3.50%-3.75% signals a continuation of its "wait-and-see" approach. A key takeaway from this meeting is that "the Fed is unwilling to 'look the other way' on energy-driven inflation in the same way it did with tariff-induced inflation in the past." He also noted that the White House's attempts to pressure the Fed into cutting rates have backfired, as Powell will temporarily remain in his position as a board member. "If the Fed were to cut rates amid accelerating inflation, such a decision would stem from a clear weakening of the labor market, not from political pressure." (Jin Shi)
Source:Odaily · Source Link
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