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The Fed is stuck in neutral as it watches how Trump’s policies play out (www.cnbc.com)

submitted 4 days ago by [email protected] to c/[email protected]

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Summary

The Federal Reserve remains in a cautious "neutral" stance as it monitors economic uncertainties stemming from Trump's trade, immigration, and regulatory policies.

Fed officials, including Raphael Bostic and Jerome Powell, emphasize uncertainty’s impact on inflation and employment.

Inflation remains above the Fed’s 2% target, with concerns about persistent price pressures. The Fed is reluctant to adjust interest rates until inflation stabilizes.

Economist Mark Zandi warns of financial risks, particularly a potential bond market sell-off.

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[–] wise_pancake 13 points 4 days ago (1 children)

I’m sure they’ll blame inflation on government spending and then takeover the Fed by executive order and try drop rates to plaster over the imminent recession caused by DOGE and trade wars.

[–] [email protected] -5 points 4 days ago (1 children)

Inflation is here because of the unfair tariffs countries like Fuji, Honduras and Canada imposes on US goods. This is why Trump must defend the US economy.

[–] wise_pancake 5 points 4 days ago (1 children)

I'm not sure if you're serious or trolling, but how much do you think a tariff from Fiji or Honduras is affecting US inflation?

[–] [email protected] 1 points 4 days ago (1 children)

More sarcasm than trolling but definitely tongue in cheek either way

[–] wise_pancake 1 points 4 days ago

That’s what I though, but you can never tell on the internet these days

[–] [email protected] 5 points 4 days ago (1 children)

I sold my treasury bonds two weeks ago. I have a serious lack of trust

[–] [email protected] 2 points 4 days ago (1 children)

How is USD cash safer than a t-bill?

[–] [email protected] 1 points 4 days ago

I think the timeline for the USD to crash is slightly longer than treasuries, but I'm not just keeping cash sitting around