WSJ What’s News Fed Kicks Off Most Important Meeting of the Year
90 snips
Sep 16, 2025 
Join Matt Grossman, an Economics reporter at WSJ, as he dives into the Federal Reserve's precarious balancing act of managing inflation and a weakening job market. He discusses the immense political pressure for interest rate cuts, particularly from President Trump. The conversation also touches on the U.S. military's controversial strikes against drug traffickers and Israel's aggressive actions in Gaza. Throughout, Grossman highlights the ripple effects these events have on the economy and market reactions.
AI Snips
Chapters
Transcript
Episode notes
Fed Faces A Dual Headwind
- The Fed must balance rising inflation and weakening jobs, a rare dual challenge.
- PCE inflation near 2.9% and slowing payrolls push policymakers toward cautious easing.
Quarter-Point Cut Is The Odds-On Favorite
- Markets expect a 0.25% rate cut but recall last year's 0.5% surprise.
- Recent labor weakness and sticky inflation make a larger cut unlikely, analysts say.
Consider Political Pressure When Pricing Risk
- Monitor political pressure on the Fed as it can affect expectations and communications.
- Treat White House comments as a factor, not a determinant, of Fed policy moves.