Federal Reserve Keeps Interest Rates Steady Still To The Chagrin Of Trump, Expects No Progress On Inflation This Year

Lies, lies, lies all around. What else is new?

Yesterday the Federal Reserve elected to hold interest rates steady at 4.0% once more in a meeting that objectively got less mainstream attention than usual (in my opinion). However, the Fed revealed that they foresee no progress on inflation (higher for longer) and rising unemployment.

The Fed said in a statement:

The Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage‑backed securities. The Committee is strongly committed to supporting maximum employment and returning inflation to its 2 percent objective.

In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee's goals. The Committee's assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments.

President Donald Trump, once again, was calling on Powell to lower rates; claiming there is “no inflation,” gas prices are less than $2 a gallon, and the prices of most things are down.

However, alternative inflation metrics show that inflation is beginning to rise even higher than previous according to Truflation.

During the press conference, Fed Chair Jerome Powell was asked, “For mainstream, what is the breaking point? What would have to happen to prompt a rate cut specifically?” Powell claimed, as he has previously, that the data does not represent a weakening economy but rather it is the sentiment.

“Well, so we really don’t see in the data yet big economic effects. We see sentiment, there are concerns that higher prices may be coming or things like that. So, people, they are worried now about inflation. They are worried about a shock from the tariffs. But they really haven’t — that shock hasn’t hit yet. Okay.

“So, we are going to be looking at not just the sentiment data, but also the real economic data as we assess what it is we should do. And remember, there will be two effects. One of them would be weakening economy, weakening economic activity which translates into higher unemployment. And the other would be potentially higher inflation, again to say it again, the timing, the scope, the scale and the persistence of those effects are very, very uncertain. So it’s not at all clear what the appropriate response for monetary policy is at this time. And by the way, our policy is in a good place, so we think we can wait and move when it is clear what the right thing to do is. Really president at all clear what it is we should do.

“So, people are feeling stress and concern, but unemployment hasn’t gone up, job creation is fine. Wages are in good shape. You know, people are not — layoffs — people are not getting laid off at high levels. Initially claims for unemployment are not increasing in any kind of impressive way. So, the economy itself is still in solid shape.”

In March, The WinePress covered Powell’s remarks where he referred to inflation as “transitory,” the same word used repeatedly during the Biden administration, translating to higher inflation for longer.

Here We Go Again: Fed Chair Powell Warns That Inflation Is 'Transitory' Because Of Trump's Tariffs

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AUTHOR COMMENTARY

Lies, lies, lies all around. What else is new? I say it every time, the data is totally fake and fabricated; you’d be a fool to take it serious, including the President’s statements which have zero truth to them.

Rate cuts will probably come later this year but at this current pace not for the next few months at least.

Proverbs 22:7 The rich ruleth over the poor, and the borrower is servant to the lender.

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[7] Who goeth a warfare any time at his own charges? who planteth a vineyard, and eateth not of the fruit thereof? or who feedeth a flock, and eateth not of the milk of the flock? [8] Say I these things as a man? or saith not the law the same also? [9] For it is written in the law of Moses, Thou shalt not muzzle the mouth of the ox that treadeth out the corn. Doth God take care for oxen? [10] Or saith he it altogether for our sakes? For our sakes, no doubt, this is written: that he that ploweth should plow in hope; and that he that thresheth in hope should be partaker of his hope. (1 Corinthians 9:7-10).

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