Marketplace All-in-One The Fed's got an interest rate decision to make
Jun 16, 2025
Henry Epp, an economic data reporter for Marketplace, and Megan McCarty Carino, a retail trends reporter, dive into the Federal Reserve’s upcoming interest rate decision. They explore the surprising stability of inflation amid tariffs and reveal the effects on the economy and employment. Additionally, they discuss the early onset of Halloween merchandise in stores, highlighting shifts in retail strategies and consumer behavior. Get insights on the broader implications for both the economy and the retail landscape as these trends unfold.
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Why Inflation Stayed Low in May
- Inflation in May remained low despite anticipated tariff-driven price hikes, puzzling economists.
- Consumer demand pull-forward and inventory stockpiling prior to tariff imposition partly explain subdued inflation.
Central Banks Navigate Uncertainty
- Central banks worldwide face conflicting pressures from geopolitical risk and differing inflation/growth scenarios.
- Many favor inaction or cautious policy shifts due to high uncertainty in economic forecasts.
Fed’s Rate Pause Expected
- The U.S. Federal Reserve is expected to hold interest rates steady this week.
- The Fed is monitoring the effects of tariffs and tax cuts before making rate adjustments.