Fed Holds Rates, Flags Tariff Risks

The Fed’s recent decision to hold rates steady has highlighted tariff-driven risks, with the Fed Chair noting potential short-lived inflation but signaling a data-dependent stance.

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The Fed’s recent decision to hold rates steady has highlighted tariff-driven risks, with the Fed Chair noting potential short-lived inflation but signaling a data-dependent stance, as markets price in 77 basis points of cuts by year-end, likely delayed until Q3 when tariff impacts become clearer.

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