Marketplace What's next for the Fed?
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Dec 4, 2025 Join Marketplace reporter Sabree Beneshore, who dives into bond market fears surrounding Fed independence, and UCLA finance professor Andrea Eisfeltz, who discusses labor market trends and the fallout from missing jobs data. Kristen Schwab sheds light on families grappling with ballooning child care costs, while Mitchell Hartman forecasts the future of the federal funds rate amid leadership changes. Together, they unpack how these economic dynamics shape everyday decisions for Americans.
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Why Fed Independence Matters
- Fed independence matters because past political pressure on chairs helped cause the 1970s inflation crisis.
- Bond markets react strongly to perceived threats to Fed independence and inflation risks.
Inflation Is Bond Investors' Biggest Fear
- Inflation erodes fixed-income returns and forces long-term yields higher as investors demand compensation.
- Rising yields push up borrowing costs broadly and can disrupt capital markets and equities.
Where The Fed Rate Could Be In A Year
- Economists expect Fed funds to be lower a year from now, around roughly 2.75–3.25%.
- Who the next Fed chair is matters less than how they respond to growth and inflation dynamics.
