Overview

• Atlanta Fed President Raphael Bostic has revised his 2025 outlook to favor just one rate cut, down from the two initially projected in March, citing tariff-related uncertainty.
• Fed officials, including John Williams and Philip Jefferson, stressed the need to wait 3–6 months to assess the economic effects of tariffs before making any policy changes.
• The Federal Reserve held interest rates steady earlier this month, maintaining the current 4.25%–4.50% range as inflation concerns take precedence over employment risks.
• Investors have significantly reduced expectations for a June rate cut, with markets now pricing in only two quarter-point reductions by year-end, down from four projected in April.
• Officials remain focused on inflation risks, with Bostic highlighting rising inflation expectations as a key challenge stemming from the ongoing trade measures.