No rate cuts? How to navigate inflation and market uncertainty

What do market whipsaws, Fed uncertainty, and a classic Italian stew have in common? They’re the focus of the latest Trader Talk episode, with host Kenny Polcari and guest John Lonski tackling the biggest economic questions of 2025. From inflation risks to consumer resilience, Polcari cuts through the noise to help investors stay ahead.

In this episode, Polcari welcomes John Lonski, a seasoned economist and former Chief Economist at Moody’s, to break down shifting market sentiment. The two dive into the debate over Federal Reserve policy, with Polcari firmly in the camp that rate cuts are unlikely this year. Lonski agrees that inflation is creeping back, warning that continued GDP growth could push interest rates higher rather than lower. “We’re starting at full employment,” he explains. “If economic momentum holds, the Fed may have no choice but to keep rates steady—or even raise them.”

As tariff speculation grows, Lonski views them as a strategic bargaining tool rather than an imminent economic threat. Meanwhile, strong corporate earnings and tight credit spreads suggest that businesses remain optimistic, reinforcing market stability.

No Trader Talk episode is complete without a culinary touch. Be sure to check out Polcari's latest recipe for giambotta—a hearty Italian stew that, much like investing, is all about balance and patience.

Trader Talk with Kenny Polcari on Yahoo Finance delivers expert analysis and actionable insights. Drawing on decades of trading floor experience, we empower you to navigate market volatility and keep your portfolio from getting burned.

Watch more episodes of Trader Talk at https://finance.yahoo.com/videos/series/trader-talk/

Thoughts? Questions? Fan mail? Email us at tradertalk@yahooinc.com. 

Yahoo Finance’s Trader Talk is hosted by Kenny Polcari and produced by Langston Sessoms.