Monetary Policy Decisions: What you need to know.
Here’s a quick snapshot of where things stand:
- Rates remain steady at 4.25%–4.5% for the third straight meeting, as the Fed signals caution amid rising concerns about inflation and unemployment.
- Growth is projected to slow to 1.4% in 2025, with inflation (PCE) still expected to exceed the 2% target at 3%.
- While overall inflation is easing—CPI at 2.4% and PCE at 2.1%—core readings remain elevated.
- Despite mixed signals, the Fed says economic activity is holding up.
Key Takeaway
Volatility may continue, but long-term planning and a steady investment strategy remain your best tools through shifting cycles.