The Federal Reserve holds rates steady but warns of inflation from tariffs.

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The Federal Reserve holds rates steady but warns of inflation from tariffs. Is the U.S. economy headed for a challenging mix of high prices and slow growth? Federal Reserve Chair Powell says tariffs will likely lead to higher consumer prices.  #FedWatch. #StagflationRisk. #TariffImpact.

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00:00The U.S. Federal Reserve has held interest rates steady between 4.25 percent and 4.5 percent,

00:06signaling two potential cuts in 2025. However, updated Fed forecasts project inflation,

00:13as measured by the Personal Consumption Expenditures Price Index, to rise beyond

00:173 percent in 2025, up from earlier estimates. This comes as Federal Reserve Chair Jerome Powell

00:23warned that tariffs are likely to cause a meaningful increase in inflation in the coming

00:27months, with the cost ultimately falling on the consumer. Despite recent upbeat economic data,

00:33including stronger job growth and improved consumer sentiment in May and early June,

00:38Powell cautioned that these positive signs might be a delayed effect of how tariffs work through

00:42the economy. The Fed anticipates that the full impact of tariffs will become more apparent in

00:47the coming months. While the economy isn't showing signs of weakening yet, Powell acknowledged that

00:53growth will eventually slow, raising the specter of stagflation, a challenging combination of

00:58higher prices and slower economic growth. This outlook is a growing concern for both the Fed

01:03and market watchers. Money Explainers

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