Overview

• The Federal Reserve left the federal funds rate unchanged at 4.25%–4.50% for the sixth consecutive meeting.
• Governor Christopher Waller said that current economic data support a rate reduction as soon as July.
• Fed Chair Jerome Powell cited the risk of tariff-driven inflation from Trump’s trade policies as a key factor in maintaining the hold.
• May’s Consumer Price Index and jobs report came in cooler than economists expected.
• May housing starts fell 9.8% and retail spending dropped 9%, suggesting emerging tariff-related price pressures.