LeadStory

Why did the Fed not lower rates?

Asked 12 days ago

Answer

The Fed did not lower rates due to ongoing economic uncertainty, concerns about inflation, and a desire for more clarity on the impact of tariffs. Despite pressure from the White House and some internal dissent, the majority opted to keep rates steady, signaling caution and a wait-and-see approach.

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CNN

Federal Reserve keeps interest rates unchanged again

CNN · 12 days ago
CNN
CNN
12 days ago
  • The Federal Reserve decided to keep interest rates unchanged for the fifth consecutive meeting. 17s
  • The Fed cited a moderation in economic growth in the first half of the year. 1m 9s
  • Two members of the Fed's board of governors dissented, voting for a rate cut—the first double dissent since 1993. 1m 49s
  • Fed Chair Powell faces pressure both from the White House and within the Fed to consider rate cuts. 2m 9s
  • Markets are watching for signals from Powell about potential rate cuts at future meetings. 2m 22s
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References

Federal Reserve keeps interest rates unchanged again
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CNN
12 days ago
Federal Reserve keeps interest rates unchanged again

The Fed is in wait-and-see mode, seeking more clarity on tariffs and their impact on prices before making any rate changes.

Fed leaves funds rate unchanged
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CNBC
12 days ago
Fed leaves funds rate unchanged

The Fed stated that uncertainty about the economic outlook remains elevated, and inflation remains somewhat elevated, justifying no rate cut.

Fed should be cautious about lowering rates, says GMO's Tom Hancock
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CNBC
14 days ago
Fed should be cautious about lowering rates, says GMO's Tom Hancock

Tom Hancock argues the Fed is right to be cautious about reducing rates due to unresolved risks from tariffs and potential inflation.

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