Fed Holds Fire on Rates, Signals Cuts Could Arrive if Jobs Falter

After wrapping up a two-day policy meeting, the Federal Reserve left its benchmark rate unchanged near 4.4 percent—exactly what markets had penciled in.

Officials offered few clues on timing, but hinted that a weaker labour market or a sharper hit to growth from President Donald Trump’s trade tariffs could tip the balance toward easing later this year.

Most economists still expect at least one trim in the second half of 2025. Wells Fargo’s chief economist Jay Bryson argues that higher import costs are already squeezing demand and may soon lift unemployment enough for the Fed to move.

Fresh staff projections due today are widely anticipated to include a rate-cut scenario.

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Complicating matters, Middle-East tensions and domestic political sparring have stoked broader uncertainty.

Trump, who has lambasted Chair Jerome Powell for keeping borrowing costs elevated, is unlikely to be satisfied until cuts materialise—setting the stage for an increasingly delicate balancing act between inflation vigilance and the Fed’s “maximum employment” mandate.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.