Holding rates steady at 3½ to 3¾ percent is the right call given real uncertainty from Middle East oil disruptions pushing inflation higher. Cutting now would be reckless when core PCE is still running at 3.0 percent and near-term inflation expectations are already rising. The Fed is doing exactly what a responsible central bank should — waiting for the data before making a move.
The Fed defying Trump's demand for rate cuts is a slap in the face to everyday Americans who need relief now. Powell has politicized the institution and can't leave soon enough — Kevin Warsh can't take over fast enough. Keeping rates frozen while working people struggle is exactly why the Fed has lost credibility.
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