Fed Holds the Line on Interest Rates: What's Driving Their Decision?

In a pivotal move on June 18, the US Federal Reserve decided to maintain its benchmark interest rate in the range of 4.25% to 4.50%. This decision comes as the central bank projects a cautious economic landscape, with deceleration in growth and persistent inflation becoming key concerns.

2025 Rate Cuts on the Horizon: What Does This Mean for the Economy?

The Fed's recent forecasts indicate that while interest rates remain unchanged for now, two quarter-point cuts could potentially take place in 2025. However, plans for future cuts have been reevaluated, with only one cut now projected for 2026 and another for 2027—marking a slower approach towards monetary easing than previously anticipated.

Stagflation Fears Loom Large as Economic Growth Slows