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Yahoo
6 hours ago
- Business
- Yahoo
So, has anything actually gotten more expensive because of Trump's tariffs?
Predictions from mainstream economists were dire after President Donald Trump launched his tariff campaign just a couple weeks after he began his second term in office: Prices would rise — sharply — they said, reigniting an inflation crisis that tens of millions of Americans had elected him to solve. But that massive, tariff-induced inflation spike hasn't materialized. Not even close. Not yet, anyway. Consumer prices rose just 2.4%, annually, last month, according to the Bureau of Labor Statistics. That was less than economists had expected, and only slightly higher than the 2.3% rate in April, which was the US economy's lowest inflation since February 2021. According to the Personal Consumption Expenditures price index most closely followed by the Federal Reserve, core inflation — which strips out volatile items like food and gas prices — fell to 2.5% in April. That was the lowest reading since March 2021. That's a far cry from what economists and consumers have predicted. Month after month, inflation has fallen short of Wall Street's expectations, as American businesses said they would be forced to hike prices as a result of historically high tariffs. America's effective tariff rate is now 14.1%, according to Fitch Ratings, up from 2.3% last year. That means Trump raised taxes on imported goods by nearly 12 percentage points in 2025. Economists expected substantial inflation increases as a result. Goldman Sachs analysts last month said core goods inflation could hit 6.3% this year and consumer prices would surge 3.7% by early 2026. JPMorgan economists said core inflation would nearly double by the end of this year. And American consumers in May expected prices to rise an alarming 6.6% this year, according to sentiment surveys from the University of Michigan. That prediction fell in June, but consumers still expect inflation to hit 5.1% in 2025. So what happened? Are economists just really bad at their jobs? Not quite. Their predictions may yet come true — and economists are largely cleaving to their bets. America's economy is enormous and complex, and predicting when prices will rise and fall can be an extremely tricky business — particularly when factoring in the on-again, off-again nature of Trump's tariff regime. Still, tariffs through mid-June haven't caused inflation to spike. Love tariffs or hate them, there's no denying inflation is lower now than when Trump took office. Fed Chair Jerome Powell on Wednesday said just a few items are growing in price as a result of tariffs, including electronics that come from China. He said PCs and A/V equipment have become more expensive because of Trump's trade war. But the price increases aren't widespread yet, Powell noted, because stores are still working through the inventory that came in to their warehouses before Trump put tariffs in place. 'Goods being sold at retailers today may have been imported several months ago, before tariffs were imposed,' Powell said. Research firm Telsey Advisory Group, which has been tracking the prices of 80 select consumer items across a wide variety of retail categories, reported this week that just 19 products it has tracked have gained in price since mid-April — and 16 items' prices fell. Similarly, the New York Times' Wirecutter, which recommends consumer products, tracked the prices for 40 of its top picks over the course of two months and found this week that the vast majority didn't change price at all: 10 gained in price and only half of those gained more than 7%. 'There haven't been many significant upticks in prices as of yet given that many retailers are still selling through their lower-cost inventory,' Dana Telsey, CEO and chief research officer of Telsey Advisory Group told CNN. Even autos, many of which are subject to a 25% tariff, plus a tariff of up to 25% on some imported auto parts, haven't gained in price — they've fallen. New car prices fell 0.2% in May, according to car-buying research site Edmunds, and they rose only 2.5% compared to the pre-tariff period in March. Both new and used car prices fell in May, according to the BLS' Consumer Price Index. That's because dealers are still working through their supply of pre-tariff cars, according to Ivan Drury, director of insights at Edmunds. With prices remaining in check so far, the Trump administration has declared victory. 'They've all been discredited,' said the White House's top trade adviser, Peter Navarro, in an interview last month with CNN, referring to tariffs' detractors. 'What we got in the first term [of Trump's presidency] was not recession or inflation, we got price stability, robust economic growth and rising wages, just as we thought we would.' Navarro has frequently pointed to the low overall inflation during Trump's first term, despite his tariffs. And he's right: CPI peaked at 2.9% in mid-2018 before falling below 2% throughout most of 2019. But Navarro's assertion about the impact of tariffs on the US economy comes with a couple of significant caveats: First, Trump during his current term has already placed tariffs of at least 10% on $2.3 trillion of imported goods, comprising 71% of all US goods imports, according to the nonpartisan Tax Foundation. In his first term, Trump placed tariffs on just $380 billion worth of foreign goods. And second, the pandemic severely disrupted the global economy soon after Trump's tariffs took effect, preventing economists from getting a decent picture of how significantly prices rose. But some data shows prices gained in the specific sectors Trump targeted with his first-term tariffs. For example, after imposing some steel tariffs in 2018, US production expanded modestly, but it sent costs rising for cars, tools and machines; and shrank those industries' output by more than $3 billion in 2021, the International Trade Commission found in a 2023 analysis. Nevertheless, Joseph Lavorgna, a former Wall Street economist turned Treasury Department official, took a victory lap because inflation hasn't risen since Trump imposed tariffs during his second term. 'Tariffs have just not shown up at all in any of the data,' Lavorgna, counselor to the Treasury secretary, told CNN this week. 'The forecasting community has been completely wrong.' Lavorgna, a former SMBC Nikko Securities chief economist who also served in the White House during Trump's first term, said a broad range of inflation metrics suggests foreign producers are absorbing tariffs and that the trade war won't be inflationary. White House press secretary Karoline Leavitt echoed that message Thursday during a briefing, saying: 'America is quickly returning to the successful formula of the first Trump administration: low inflation and rising wages.' Many mainstream economists argue that the low inflation of the spring represents a calm before the summer storm, when they expect prices to rise. 'It's a question of when, not if,' Stephanie Roth, chief economist at Wolfe Research, told CNN. Walmart, Target, Lululemon, Home Depot and Costco among others have said in recent weeks that they will raise some prices because of tariff pressures. Although some of the big box retailers said they would work to keep most prices low, they acknowledged that they operate low-margin businesses, and in the cases when American-made alternatives are unavailable or more expensive, they expect that they'll have to pass some of that additional cost to their customers. Consumers won't be alone in their struggles with tariffs in the coming months, said said Sid Malladi, CEO of Nuvo, a company that manages businesses' trade partnerships. Price hikes will weigh on businesses, too, many of whom will take on some of the hit to keep prices as low as possible for as long as possible. But that could mean difficult conversations in the boardroom later this year about potential layoffs and other cost cutting. 'This is early innings. No one wants to be first out of the gate,' said Malladi. 'You don't want to risk reputational damage to your brand, because raising prices in this environment might cause customers to turn away from you. Many may eat their margin for a few months.' 'It's hard to overstate the level of anxiety businesses have,' Malladi added. Small businesses, without the supply chain mastery of larger companies, have struggled in particular to afford higher tariff costs and have said they are reducing supply or raising prices. Many have complained that American alternatives for some foreign imports may be unavailable or are too expensive. 'While larger retailers may have the scale, capital and pricing power to absorb or strategically offset these pressures, small and mid-sized players remain significantly more vulnerable, with limited flexibility to manage rising input costs or supply disruptions,' Telsey said in TAG's latest Product Pricing Analysis report. Telsey noted that prices, when they eventually start to rise, won't all gain equally or across the board. Only select goods will start to gain in price to start, likely beginning in late August or September. 'Inventory is ordered typically anywhere from six months to one year in advance, and it is expected that the select pricing pieces will begin to show up in late summer,' she said. Fed Chair Powell on Wednesday agreed that the tipping point for broad consumer price increases could come this summer as inventories of pre-tariff warehoused goods dry up. 'We do expect to see more of that over the course of the summer,' Powell said. 'It takes some time for tariffs to work their way through the chain of distribution to the end consumer.' Normally, retailers hold about 1 to 2 months' worth of inventory on items, noted Kristy Akullian, head of iShares Investment Strategy, Americas, so prices could begin to rise in the coming weeks. Another indication that prices could start to spike: In April's Institute for Supply Management services report, prices paid by businesses increased the most since November 2022, and business inventories contracted. 'Low inventories make it harder for companies to keep prices steady, so going forward, we expect the inflation impacts from tariffs to become more apparent,' Akullian said. Powell agreed with that timeline, noting companies that report on their business sentiment to the Fed have said they expect to pass those tariff costs on down the supply chain. 'Many, many companies do expect to put all or — some of the effect of tariffs through to the next person in the chain, and ultimately, to the consumer,' Powell said. 'So we're beginning to see some effects. We expect to see more.' Despite initial success at maintaining low prices, Treasury's Lavorgna conceded inflation could begin to rise down the road because of tariffs. 'I'm not saying there can't be a tariff effect on the numbers at some point,' he said. CNN's Phil Mattingly, Matt Egan and Chris Isidore contributed to this report. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Egypt Independent
10 hours ago
- Business
- Egypt Independent
So, has anything actually gotten more expensive because of Trump's tariffs?
CNN — Predictions from mainstream economists were dire after President Donald Trump launched his tariff campaign just a couple weeks after he began his second term in office: Prices would rise — sharply — they said, reigniting an inflation crisis that tens of millions of Americans had elected him to solve. But that massive, tariff-induced inflation spike hasn't materialized. Not even close. Not yet, anyway. Consumer prices rose just 2.4 percent, annually, last month, according to the Bureau of Labor Statistics. That was less than economists had expected, and only slightly higher than the 2.3 percent rate in April, which was the US economy's lowest inflation since February 2021. According to the Personal Consumption Expenditures price index most closely followed by the Federal Reserve, core inflation — which strips out volatile items like food and gas prices — fell to 2.5 percent in April. That was the lowest reading since March 2021. That's a far cry from what economists and consumers have predicted. Month after month, inflation has fallen short of Wall Street's expectations, as American businesses said they would be forced to hike prices as a result of historically high tariffs. America's effective tariff rate is now 14.1 percent, according to Fitch Ratings, up from 2.3 percent last year. That means Trump raised taxes on imported goods by nearly 12 percentage points in 2025. Economists expected substantial inflation increases as a result. Goldman Sachs analysts last month said core goods inflation could hit 6.3 percent this year and consumer prices would surge 3.7 percent by early 2026. JPMorgan economists said core inflation would nearly double by the end of this year. And American consumers in May expected prices to rise an alarming 6.6 percent this year, according to sentiment surveys from the University of Michigan. That prediction fell in June, but consumers still expect inflation to hit 5.1 percent in 2025. So what happened? Are economists just really bad at their jobs? Not quite. Their predictions may yet come true — and economists are largely cleaving to their bets. America's economy is enormous and complex, and predicting when prices will rise and fall can be an extremely tricky business — particularly when factoring in the on-again, off-again nature of Trump's tariff regime. Still, tariffs through mid-June haven't caused inflation to spike. Love tariffs or hate them, there's no denying inflation is lower now than when Trump took office. Very little has gotten more expensive Fed Chair Jerome Powell on Wednesday said just a few items are growing in price as a result of tariffs, including electronics that come from China. He said PCs and A/V equipment have become more expensive because of Trump's trade war. But the price increases aren't widespread yet, Powell noted, because stores are still working through the inventory that came in to their warehouses before Trump put tariffs in place. 'Goods being sold at retailers today may have been imported several months ago, before tariffs were imposed,' Powell said. Gantry cranes stand near shipping containers at Yangshan Port outside of Shanghai, China, on June 17. Go Nakamura/Reuters Research firm Telsey Advisory Group, which has been tracking the prices of 80 select consumer items across a wide variety of retail categories, reported this week that just 19 products it has tracked have gained in price since mid-April — and 16 items' prices fell. Similarly, the New York Times' Wirecutter, which recommends consumer products, tracked the prices for 40 of its top picks over the course of two months and found this week that the vast majority didn't change price at all: 10 gained in price and only half of those gained more than 7 percent. 'There haven't been many significant upticks in prices as of yet given that many retailers are still selling through their lower-cost inventory,' Dana Telsey, CEO and chief research officer of Telsey Advisory Group told CNN. Even autos, many of which are subject to a 25 percent tariff, plus a tariff of up to 25 percent on some imported auto parts, haven't gained in price — they've fallen. New car prices fell 0.2 percent in May, according to car-buying research site Edmunds, and they rose only 2.5 percent compared to the pre-tariff period in March. Both new and used car prices fell in May, according to the BLS' Consumer Price Index. That's because dealers are still working through their supply of pre-tariff cars, according to Ivan Drury, director of insights at Edmunds. Trump team takes a victory lap With prices remaining in check so far, the Trump administration has declared victory. 'They've all been discredited,' said the White House's top trade adviser, Peter Navarro, in an interview last month with CNN, referring to tariffs' detractors. 'What we got in the first term [of Trump's presidency] was not recession or inflation, we got price stability, robust economic growth and rising wages, just as we thought we would.' Navarro has frequently pointed to the low overall inflation during Trump's first term, despite his tariffs. And he's right: CPI peaked at 2.9 percent in mid-2018 before falling below 2 percent throughout most of 2019. But Navarro's assertion about the impact of tariffs on the US economy comes with a couple of significant caveats: First, Trump during his current term has already placed tariffs of at least 10 percent on $2.3 trillion of imported goods, comprising 71 percent of all US goods imports, according to the nonpartisan Tax Foundation. In his first term, Trump placed tariffs on just $380 billion worth of foreign goods. And second, the pandemic severely disrupted the global economy soon after Trump's tariffs took effect, preventing economists from getting a decent picture of how significantly prices rose. But some data shows prices gained in the specific sectors Trump targeted with his first-term tariffs. For example, after imposing some steel tariffs in 2018, US production expanded modestly, but it sent costs rising for cars, tools and machines; and shrank those industries' output by more than $3 billion in 2021, the International Trade Commission found in a 2023 analysis. Nevertheless, Joseph Lavorgna, a former Wall Street economist turned Treasury Department official, took a victory lap because inflation hasn't risen since Trump imposed tariffs during his second term. 'Tariffs have just not shown up at all in any of the data,' Lavorgna, counselor to the Treasury secretary, told CNN this week. 'The forecasting community has been completely wrong.' Lavorgna, a former SMBC Nikko Securities chief economist who also served in the White House during Trump's first term, said a broad range of inflation metrics suggests foreign producers are absorbing tariffs and that the trade war won't be inflationary. White House press secretary Karoline Leavitt echoed that message Thursday during a briefing, saying: 'America is quickly returning to the successful formula of the first Trump administration: low inflation and rising wages.' Economists say: Just wait Many mainstream economists argue that the low inflation of the spring represents a calm before the summer storm, when they expect prices to rise. 'It's a question of when, not if,' Stephanie Roth, chief economist at Wolfe Research, told CNN. Walmart, Target, Lululemon, Home Depot and Costco among others have said in recent weeks that they will raise some prices because of tariff pressures. Although some of the big box retailers said they would work to keep most prices low, they acknowledged that they operate low-margin businesses, and in the cases when American-made alternatives are unavailable or more expensive, they expect that they'll have to pass some of that additional cost to their customers. An employee counts inventory in a Walmart Supercenter on May 15 in Austin, won't be alone in their struggles with tariffs in the coming months, said said Sid Malladi, CEO of Nuvo, a company that manages businesses' trade partnerships. Price hikes will weigh on businesses, too, many of whom will take on some of the hit to keep prices as low as possible for as long as possible. But that could mean difficult conversations in the boardroom later this year about potential layoffs and other cost cutting. 'This is early innings. No one wants to be first out of the gate,' said Malladi. 'You don't want to risk reputational damage to your brand, because raising prices in this environment might cause customers to turn away from you. Many may eat their margin for a few months.' 'It's hard to overstate the level of anxiety businesses have,' Malladi added. Small businesses, without the supply chain mastery of larger companies, have struggled in particular to afford higher tariff costs and have said they are reducing supply or raising prices. Many have complained that American alternatives for some foreign imports may be unavailable or are too expensive. 'While larger retailers may have the scale, capital and pricing power to absorb or strategically offset these pressures, small and mid-sized players remain significantly more vulnerable, with limited flexibility to manage rising input costs or supply disruptions,' Telsey said in TAG's latest Product Pricing Analysis report. Telsey noted that prices, when they eventually start to rise, won't all gain equally or across the board. Only select goods will start to gain in price to start, likely beginning in late August or September. 'Inventory is ordered typically anywhere from six months to one year in advance, and it is expected that the select pricing pieces will begin to show up in late summer,' she said. Fed Chair Powell on Wednesday agreed that the tipping point for broad consumer price increases could come this summer as inventories of pre-tariff warehoused goods dry up. 'We do expect to see more of that over the course of the summer,' Powell said. 'It takes some time for tariffs to work their way through the chain of distribution to the end consumer.' Normally, retailers hold about 1 to 2 months' worth of inventory on items, noted Kristy Akullian, head of iShares Investment Strategy, Americas, so prices could begin to rise in the coming weeks. Another indication that prices could start to spike: In April's Institute for Supply Management services report, prices paid by businesses increased the most since November 2022, and business inventories contracted. 'Low inventories make it harder for companies to keep prices steady, so going forward, we expect the inflation impacts from tariffs to become more apparent,' Akullian said. Powell agreed with that timeline, noting companies that report on their business sentiment to the Fed have said they expect to pass those tariff costs on down the supply chain. 'Many, many companies do expect to put all or — some of the effect of tariffs through to the next person in the chain, and ultimately, to the consumer,' Powell said. 'So we're beginning to see some effects. We expect to see more.' Despite initial success at maintaining low prices, Treasury's Lavorgna conceded inflation could begin to rise down the road because of tariffs. 'I'm not saying there can't be a tariff effect on the numbers at some point,' he said.
Daily Express
13 hours ago
- Business
- Daily Express
Ringgit expected to stay defensive due to Middle East conflict
Published on: Saturday, June 21, 2025 Published on: Sat, Jun 21, 2025 By: Bernama Text Size: For the week just ended, the ringgit gave up its earlier gains at the beginning of the week as escalating geopolitical concerns spurred demand for the safe-haven US dollar. Kuala Lumpur: The ringgit is expected to stay defensive within a tight range next week, as traders and investors will continue to observe the military conflict in the Middle East, said an analyst. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said that the Israel-Iran war continues to take centre stage as the United States is still weighing its options to participate in the conflict. 'White House spokeswoman Karoline Leavitt indicated that President Donald Trump will make his decision whether or not to go within the next two weeks. The US Dollar Index (DXY) fell 0.22 per cent to 98.691 points. 'Apart from that, Personal Consumption Expenditures (PCE) inflation data for May 2025 will also be released next week. On that note, ringgit could stay within a range of RM4.24 to RM4.25 next week,' he told Bernama. For the week just ended, the ringgit gave up its earlier gains at the beginning of the week as escalating geopolitical concerns spurred demand for the safe-haven US dollar. However, the market showed a slight sign of recovery at the end of the week, as some investors took the opportunity to return to emerging currencies due to the latest White House announcement regarding the ongoing Iran-Israel war. Advertisement The ringgit ended the week easier against the greenback, closing at 4.2505/2565 on Friday from 4.2435/2480 a week earlier. The local note traded mostly higher against a basket of major currencies. The ringgit rose vis-à-vis the Japanese yen to 2.9245/9289 from 2.9448/9482 at Friday's close, went up against the British pound to 5.7356/7437 from 5.7482/7543 previously, but depreciated versus the euro to 4.9000/9069 from 4.8906/8958 at the end of last week. The ringgit traded mostly higher against ASEAN currencies. The local note declined against the Singapore dollar to 3.3088/3140 on Friday from 3.3077/3118 in the previous week, advanced versus the Indonesian rupiah to 259.2/259.7 from 260.2/260.6 previously, and strengthened versus the Thai baht to 12.9727/9969 from 13.0807/1018 last week. Meanwhile, the ringgit also rose against the Philippine peso at 7.43/7.45 compared to 7.55/7.56 previously. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Miami Herald
3 days ago
- Business
- Miami Herald
Fed interest rate cut decision resets forecasts for the rest of this year
Those lower mortgage rates you've been dreaming about won't come true this summer. Same goes for credit-card bills and auto loans. Don't miss the move: Subscribe to TheStreet's free daily newsletter The Federal Reserve Board kept interest rates steady today. It also signaled when U.S. consumers, businesses and investors might expect a shift in monetary policy. The Fed's policy-making Federal Open Meeting Committee dropped several forecast clues for future rate cuts later this year and next. Bloomberg/Getty Images The Fed's dual mandate requires a cautious approach to monetary policy to keep both inflation and unemployment relatively low. It's a delicate balance. Higher interest rates lower inflation but reduce jobs. Lower interest rates lower unemployment rates but increase inflation. Related: Will the Fed cut interest rates at its meeting this week? Both the May CPI and jobs reports were cooler than expected but housing starts and retail spending saw surprise slumps. The full impact of President Trump's tariff and tax policies remains unknown across the post-pandemic economy for an estimated 30-90 days. The FOMC controls the Federal Funds Rate, which banks charge each other overnight to borrow money. It directly or indirectly affects the cost of borrowing money for all Americans. This includes Treasury bond yields, especially the 10-year Treasury note, in determining how much banks charge for mortgage rates. The FOMC last cut the Federal Funds Rate in December 2024. The FOMC announced at its monthly meeting today to hold the Federal Funds Rate at 4.25% to 4.50% for June. Trump maintains that lower interest rates are crucial to keep the U.S. economy from sliding into recession, or worse, stagflation. Fed official revamps interest-rate cut forecast for rest of this year Lower interest rates can't come soon enough for President Donald Trump, who's been slamming Fed Chair Jerome Powell with escalating demands for a deep cut since taking office five months ago. Trump's ripped Powell as "stupid" just hours before the Fed's announcement, adding "maybe'' Trump himself should be the next central bank chair. He has threatened to nominate a "shadow president" before Powell's 10-year term expires in May 2026. Trump maintains that lower interest rates are crucial to keep the U.S. economy from sliding into recession, or worse, stagflation. The FOMC released its quarterly "dot plot." This chart displays where each individual Fed member thinks the Federal Funds Rate will be for the current year, the next two years, and the long term. Key economic indicators used to determine the "dots'' on the chart include: Changes in real GDPCore Personal Consumption Expenditures (PCE)Core inflationUnemployment rate The forecasts are not set in stone. The March 2025 dot plot projected two 0.25-percentage-point rate cuts this year, two more of 0.25 point in 2026, and one 0.25 point in 2027. Related: Federal Reserve prepares strong message on long-term interest rates This was before the thrust of tariff-driven inflation risks, potential hikes in the federal deficit and the Middle East conflict raised market and economic jitters. The next rate cut might come in September, and that may be it for the year, according to some analysts. "The Fed can afford to wait on tariff and oil impacts to develop," former Fed Chairman Alan Binder said today in an interview with CNBC prior to the announcement. Slumping housing starts are "one of the sectors the Fed watches most closely," Binder said, referring to the stagnation in the housing industry. The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Mint
3 days ago
- Business
- Mint
US Fed Meeting LIVE: Federal Reserve likely to hold interest rates; all eyes on ‘dot plot', Powell's commentary
US Federal Reserve Chairman Jerome Powell is set to take the podium on Wednesday, 18 June 2025, as investors eye the US Fed's 'dot plot,' a chart that holds the data on each Federal Reserve official's expectations for where interest rates will head in the future. The central bank will announce the outcome of the two-day US Federal Open Market Committee (FOMC) meeting on Wednesday, 18 June 2025. For Indian investors, the data will be released on the official channels at 11:30 p.m. (IST). Experts and investors are widely expecting the US central bank to keep its key benchmark interest rates 'unchanged' or on 'hold' amid rising global uncertainties due to tensions over the Israel-Iran conflict. The US Federal Reserve has kept its key benchmark interest rates unchanged at 4.25%-4.50% since its last easing move in December 2024 by a quarter percentage point (25 basis points). If the US Fed decided to keep the interest rates unchanged, then it would be the fourth straight policy outcome with lending rates on hold. The core inflation for the US witnessed a moderate uptick as it rose 0.1 per cent from April levels, as per the Labor Department data. Yet, policymakers are clear that the Fed would make a move once the concerns over Trump tariffs are resolved. Check US Federal Reserve Meeting-related stories here Follow updates here: 18 Jun 2025, 06:42 PM IST US Fed Meeting 2025 LIVE: The US consumer price index, excluding the food and energy categories, witnessed a 0.1% rise from April 2025 levels, according to data reviewed by the news agency Bloomberg. The Federal Reserve data, citing the Bureau of Economic Analysis, showed that the US inflation indicator, or the Personal Consumption Expenditures (PCE) Price Index, was at 2.1% in April 2025. 18 Jun 2025, 06:32 PM IST US Fed Meeting 2025 LIVE: Nasdaq futures were trading marginally higher with 0.17% gains at 21,991.75 as of 6:22 p.m. (IST) ahead of the Wall Street open on the US Federal Reserve's policy outcome day. The Dow and S&P futures remain flat but in the positive range prior to the US market open on 18 June 2025. 18 Jun 2025, 06:23 PM IST US Fed Meeting 2025 LIVE: The US Federal Reserve decided to keep the key benchmark interest rates unchanged at the range of 4.25% to 4.5% on 7 May 2025 as Chairman Jerome Powell reiterated his stance of 'no hurry to cut rates' as the US central bank announced its plans to analyse economy ahead of a potential rate cut. 'The Committee decided to maintain the target range for the federal funds rate at 4-1/4 to 4-1/2 per cent. In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks,' said the FOMC in the official release.
