BiggerPockets Daily The Fed Says Rate Cuts to Come, But Not Yet
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Jun 19, 2025 Jerome Powell's recent remarks highlight the Federal Reserve's cautious stance on interest rates amid inflation worries and trade uncertainties. The potential for rate cuts in 2025 is on the table, but quick changes are not expected. As tariffs threaten to raise prices, the focus remains on a 'wait-and-see' approach. Meanwhile, practical tools for real estate investors are discussed, emphasizing services that enhance management efficiency and security.
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Fed Holds Rates Amid Tariff Concerns
- The Fed kept interest rates steady between 4.25% and 4.5% due to cautious assessment of trade and spending policies.
- Powell warned tariffs will likely raise consumer prices despite easing overall inflation.
Shifting Inflation Focus And Challenges
- Inflation has generally declined, but the Fed focuses on core PCE inflation projected at 3% this year, above their 2% goal.
- The Fed's shift in focus on inflation measures reflects changing priorities and challenges in rate decisions.
Economic Weakness Suggests Rate Cuts
- Economic indicators suggest consumer spending and confidence are down, potentially leading to a slow rise in unemployment.
- This weakening consumer and developer sentiment may warrant future rate cuts from the Fed.