The Federal Reserve faced one of its more challenging decisions recently. Despite a notable decline in US macroeconomic data, which would typically prompt interest rate cuts, the Fed has opted to remain cautious due to ongoing tariff impacts. This stance is likely to persist unless economic conditions drastically worsen. As a result, forecasts from the Fed’s dot plot on interest rates have become harder to predict. Instead of focusing solely on these projections, it’s crucial to examine current data trends, potential Fed actions, and the implications for asset prices.
— new from Bloomberg
