The Federal Reserve resumed its rate-cutting cycle yesterday, lowering the federal funds rate by 25 basis points to a target range of 4.00%-4.25%. The Fed’s decision to cut rates reflects a cautious pivot toward supporting employment amid a softening labor market, even as inflation remains above target. It is uncertain how inflation will trend for the remainder of the year under this lower rate environment. On top of this, the effects of tariffs might also become more evident in prices over...
