Federal lawmakers say rate hikes could be necessary with inflation exceeding the central bank’s 2 percent target rate. With concerns on the rise, amid the conflict with Iran, officials have projected higher inflation for the year, with little change in the unemployment rate. The Fed in March held its benchmark overnight interest rate steady in the 3.50%-3.75%.
Financial Planner, Richard Rosso says according to the data, it’s too early to pull the trigger.
“There just doesn’t seem to be a reason for them for either inflation or the employment numbers.” Rosso said.
He says there are positive signs of economic growth as Americans cash in on the One Big Beautiful Bill. “There’s no tax on tips, and the additional deduction to offset some social security taxes with tax refunds up 10 percent compared to last year. Labor market’s stable, we were making progress towards the Fed’s 2 percent inflation rate goal.” He said.
Rosso says the inflation rate hasn’t been where the Feds would like for about 5 years now. He says the American economy never recovered from the 2020 Co-Vid pandemic.
In addition, Rosso says anything Trump does adds “fuel to the fire” even though Americans were paying $5-7 in some states at the pump, but you didn’t see that in mainstream media. The high gas prices at the pump and at the grocery story were published, but it wasn’t headlined as any fault of the president.