Fed Prepares September Rate Cut Despite Lingering Inflation Threats
Wall Street''s favorite guessing game—Fed rate moves—just got a fresh twist. Economists now predict a September cut, even as inflation refuses to play dead.
The central bank''s balancing act: stimulate growth without unleashing another price surge. Because clearly, that worked so well last time.
Markets brace for impact while crypto traders smirk—another round of cheap money incoming. Just don''t ask about the long-term consequences.
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“High tariffs are here to stay, and they will produce elevated inflation that is sustained well into 2026,” said BNP Paribas Chief U.S. Economist James Egelhof.
Trump Calls for 1% Rate Cut
Last week, President TRUMP urged Fed Chair Jerome Powell to slash the federal funds rate by 1% following a better-than-expected jobs report. However, that likely won’t be the case, as 85 economists expect the rate to be in a range of at least 3.75% and 4.00% by the end of 2025. In addition, 20 economists believe that the rate will remain unchanged for the rest of the year. A lower rate allows corporations to borrow at lower costs, supporting corporate growth and earnings.
Head over to TipRanks’ Economic Indicators Dashboard to view the federal funds rate and other key economic metrics.
