A major recent economic event was the Federal Reserve’s choice to hold interest rates steady after raising them repeatedly over the past two years. This move signals that inflation is finally cooling, but the Fed isn’t confident enough yet to start cutting rates.Inflation has slowed, especially in energy and goods, but core prices are still slightly above the Fed’s 2% goal. By pausing, the Fed is trying to support the economy without risking a rebound in inflation.
The decision immediately affected markets: mortgage rates leveled off, the stock market reacted positively, and businesses gained a clearer sense of short-term financial conditions. Still, borrowing costs remain high, meaning investment and hiring may stay slower for now.
Overall, the Fed’s pause shows an economy that’s stabilizing but not fully out of the woods. The next few months will reveal whether inflation continues to fall or if more action is needed.
https://www.federalreserve.gov/monetarypolicy/monetary20250730a.htm?utm_source=chatgpt.com
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