Just as the pace of consumer price increases has meaningfully slowed, concerns about the impact of Trump’s economic proposals have quickened.
by Rob Wile
NBC News
The Federal Reserve announced Thursday it was lowering its key interest rate by a quarter-point — a widely expected move that coincides with inflation approaching the central bank’s 2% goal.
In their statement, Fed officials noted that inflation remains “somewhat elevated” while unemployment has “moved up but remains low.” They did note that conditions in the labor market have “generally eased” — perhaps a nod to signs of growing softness in hiring.
Some market participants noted the officials removed key language that had indicated it was still confident it would hit the 2% inflation target.
In a note to clients, Omair Sharif, president of Inflation Insights, said that may signal a new willingness by the Fed to forgo a widely expected additional quarter-point cut next month: “If that is the case, then the Committee is likely closer to a pause.”
In other words, the central bank would keep rates elevated.