US News
LAST UPDATE: June 14, 2025
The Case for Rate Cuts Is Growing
Central banks, especially the Fed, face increasing pressure to cut rates amid falling core inflation, weakening labor markets, and cumulative effects of tariffs, despite temporary price boosts .
Insight
Analysts argue that stable inflation combined with external pressures (tariffs, oil prices) may tip the balance toward easing. Although not immediate, rate cuts are being priced in by markets, signaling a policy pivot later this year.
Fed to keep rates steady as tariffs, possible oil shock counter inflation data
The Federal Reserve indicated it plans to maintain current interest rates, citing ongoing uncertainty from rising tariffs and potential oil price shocks that may offset disinflationary trends.
Insight
The Fed is prioritizing caution amid a climate where external shocks could flip economic conditions abruptly. Patience with policy suggests a data-dependent stance until the inflation outlook becomes clearer.
US Consumer Sentiment Jumps as Inflation Expectations Improve
The University of Michigan’s survey showed a significant increase in consumer sentiment in early June, driven by a drop in 1-year and 5-year inflation expectations.
Insight
Improved sentiment indicates households are growing more optimistic, potentially supporting spending. This strengthens the case for inflation stabilization and could influence Fed policy toward easing.
