How Low Can Interest Rates Go? The Fed’s Balancing Act in an Unusual Economy
#Morningstar #FedMeeting #JeromePowell
Plus, the risks that could force the Fed to shift its focus from a softening job market back to sticky inflation.
00:00 Introduction
00:30 Role of the Fed in the Job Market
02:56 What to Know from the Fed’s Dot Point Projections
05:01 Risks in the Fed’s Fight Against Inflation
A change in priorities prompted the Federal Reserve to cut interest rates for the first time in 2025. Fed Chair Jerome Powell says a softening job market is carrying more risk than stubborn inflation. The Fed trimmed a quarter percentage point as expected and signaled more cuts are on their way. Joining me to discuss these developments is Preston Caldwell. He is a senior US economist for Morningstar Investment Management.
Read more about Preston’s outlook for the Fed:
Fed Cuts Rates and Signals More to Come in 2025 https://www.morningstar.com/economy/fed-cuts-rates-signals-more-come-2025
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Read what our team is writing.
Preston Caldwell https://www.morningstar.com/people/preston-caldwell
Ivanna Hampton https://www.morningstar.com/people/ivanna-hampton
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