Roger Ferguson: Fed's Hand Held on Rate Cuts Amid Stagflation Concerns

Fed's Current Stance on Interest Rates

• 🎯 The Federal Reserve has left interest rates unchanged, as widely anticipated, while still penciling in two rate cuts by year-end.
• ⚠️ A significant portion of policymakers (seven) indicated no rate cuts for the year, with two suggesting only one, highlighting a divided Fed.
• 📈 The Fed is concerned about stagflation, with inflation not decreasing rapidly enough, which is likely to keep their hands tied on rate cuts for an extended period.

Tariffs and Economic Uncertainty

• ❓ The impact of tariffs on inflation and economic growth is a key factor the Fed is waiting to assess before considering rate shifts.
• 📉 There's a concern that waiting for the