Today’s video: the Fed is between a rock and a hard place. Inflation has been stuck around 2.8% and the Fed would like to get it down to 2%. In January, the Fed paused on interest rates but Wall Street still hopes for two cuts in 2025. The March 19 meeting will include the quarterly revision of the Dot Plot that will outline whatthe central bank is thinking about any cuts for 2025. The problem is the Fed doesn’t know where the economy is going. There are too many uncertainties surrounding constantly changing Trump tariffs as well as the expected tax cut (which will result in higher yields and a market and economic stimulus). The budget and the budget deficit also remains an unanswered question. These uncertainties, with the Fed also under huge political pressure from the Trump administration to make interest rate cuts, catch the Fed between a rock and a hard place and we won’t know how the Fed plans to address its dilemma until March.
Here’s the link:
