Federal Reserve's Current Position

The Federal Reserve is expected to maintain its current monetary policy stance, signaling a period of stability after three consecutive rate cuts. Despite strong job creation and a low unemployment rate, long-term unemployment has reached a three-year high, indicating a hiring slowdown. The Fed is closely monitoring upcoming reports on inflation and employment to assess future actions, especially amidst new administration policies. This cautious approach reflects the Fed's anticipation of potential inflationary effects stemming from government policies and tariff discussions.