General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsNext week's Federal Reserve meeting should be interesting to say the least
The Fed is not likely going to cut rates even though before the election, the Fed was reducing the rate at a regular pace, but now they've stopped. My guess is that the financial and business communities are growing frustrated and angry at Trump's tariff bullshit. They've been signaling to him through various channels to get him to stop or at least provide clarity on his moves. But that's been to no avail.
The next weapon to use to get Smelvis' attention is the Fed. The Fed will need to heel Trump by stalling any further cuts and being hawkish on any tariff-related inflation. So, next week will be a doozy.
https://www.forbes.com/sites/simonmoore/2025/03/10/fed-likely-wont-cut-rates-on-march-19-heres-what-to-look-for/

unblock
(54,766 posts)But what they say will be interesting. Problem is, Donnie/musk are creating problems rate cuts can't really, or fully, address.
They'll wait for inflation to slow, which will take time while gdp is cratering.
https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html
Yavin4
(37,146 posts)If the guidance is hawkish, watch the markets fall. The Fed has a big voice on tariffs.
unblock
(54,766 posts)But I'm sure they'll say they will respond to the data, and I suspect the inflation data will not quickly show prices easing, so I'm not expecting a major shift in their guidance.
That said, they should certainly mention the rapidly contracting gdp and merely noting that this has captured their attention could be enough to change interest rate expectations.
I certainly think "higher for longer" is dead.