The Economy Holds Steady – For Now
The Federal Reserve made its latest move — or rather, chose not to move — by keeping interest rates unchanged. Jerome Powell, the ever-cautious Fed Chair, acknowledged that while the economy remains strong, inflation and the impact of tariffs continue to complicate things. Powell said he expects two rate cuts later this year, which is the kind of news that makes Wall Street perk up a bit.
Tariffs are the wildcard. Trump’s trade war has made it increasingly difficult to separate tariff-driven inflation from other economic pressures. The market’s reaction was largely positive because Powell signaled that the Fed is ready to cut rates if needed. Still, the long-term outlook remains murky. If tariffs continue to drive up prices, the Fed may be forced into a tricky balancing act between controlling inflation and keeping the economy growing.
Trump’s Ukrainian Peace Play
Trump has been on the phone this week, and not just with his usual allies. First, he spoke with Vladimir Putin, then followed it up with an hour-long call to Volodymyr Zelensky. His pitch? Finding a middle ground between Ukraine’s requests and Russia’s demands.
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