Unusual Whales Unusual Whales Pod Ep. 62: FOMC Holds Rates; Tariffs, Trade, Housing, and Conflict in the Middle East
Jun 19, 2025
In this discussion, guests Joseph Wang, a former Fed trading head, Bob Elliott, a seasoned market strategist, volatility expert Cem Karsan, and market analyst Last Bear Standing dive into the current economic landscape. They tackle pressing topics like the Fed's cautious interest rate hold amid inflation uncertainties and the implications of U.S.-China trade dynamics. The panel also addresses geopolitical tensions affecting oil prices and explores the evolving viability of the 60-40 investment strategy, making sense of the complex market dynamics.
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Fed’s Cautious Approach to Policy
- The Fed is hesitant to act preemptively due to high uncertainty in policy and inflation expectations.
- They prefer to wait for clear data signals before adjusting rates, valuing employment over inflation right now.
Why Fed Holds Rates Steady
- Holding policy steady now reflects uncertainties from tariffs and geopolitical conflicts.
- The labor market's stability keeps urgency low for aggressive rate cuts despite some softness.
Complex Inflation Picture
- Inflation appears to be trending down despite tariff-driven risks and oil price pressures.
- Fed remains cautious due to complex conflicting data and possible political influences.