The Federal Reserve had appeared set to lower interest rates in the upcoming spring, as officials had expressed optimism about easing economic pressure through reduced borrowing costs. However, these hopes have faded as inflation has resurfaced and economists are concerned that the main drivers of price increases are becoming more difficult to tackle.
As a result, forecasters now anticipate fewer rate cuts, likely towards the end of the year. This would put the Federal Reserve in the middle of a contentious election season, potentially sparking a political controversy that central bankers typically try to avoid. Despite this, officials at the Fed remain focused on their mandate to promote price stability and maintain a strong US economy.