Dual Mandate Duel

As expected, the Federal Reserve maintained its benchmark policy rate at 4.25%–4.50%. In the first Summary of Economic Projections since the April tariff announcement, Fed officials forecast higher inflation and unemployment alongside lower growth. The updated projections highlight growing tension within the Fed’s dual mandate.Although recent inflation data was promising, tariffs and rising oil prices present upside risks, weakening the case for rate cuts. On the other hand, officials are no...

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