Why the Fed Will be Late to Cut Rates No Matter What
Investors are geared up for Wednesday's Federal Reserve decision amid bets officials signal their wait-and-see stance until there's more clarity on the impacts of President Donald Trump's trade policies. Short-term Treasury yields rose as traders trimmed wagers on rate cuts, seeing around three quarter-point reductions in 2025 starting in July. With the central bank expected to keep its benchmark rate steady at 4.25%-4.50% on Wednesday, traders will be scrutinizing comments by Fed Chair Jerome Powell for insight into officials' interpretation of recent data and whether Trump's economic policies are prompting any change in view on when to ease policy. Frances Donald, chief economist at RBC, explains why she believes the Fed will be forced to wait to ease monetary policy based on tariffs' delayed impact on inflation and the slow speed of US labor market softening. Frances speaks with Tom Keene and Tim Stenovec on Bloomberg Radio. (Source: Bloomberg)
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