Why Aren't Interest Rates Falling?

Despite falling inflation, strong job growth, and public pressure to ease up, the Federal Reserve is keeping interest rates elevated. Why?

Because the risks of cutting too early are just too high. The threat of Trump’s tariffs driving prices back up is real. And the Fed’s job is to plan ahead—not react too fast.

https://befluentinfinance.com/why-is-the-federal-reserve-keeping-interest-rates-high/

 

The market anticipates higher inflation- oil/ tariffs as well as being 37 trillion in debt..

 

30% of CPI inputs are best guess

https://www.apolloacademy.com/cpi-data-quality-declining/

 

Stagflation & the first world's addiction to MMT nonsense. The bond vigilantes are coming in short order, probably by 2027 or sooner.

 

The Beast (Inflation) hasn't been totally beat. Wage Growth is still high. The Fed doesn't change direction back and forth. They will wait for certainty.

 

They finally may care about the size of our debt and demand a higher rate to finance our debt ( eventually).
That said, there really isnt a good alternative to US Treasuries and as long as they keep buying, rates will be held down.

 

Gives treasuries a reason to be bought.

 

lol, inflation is not falling, the speed of inflation increases is flat.

 

Rates are fair why should they be less than 4% there is zero reason for them to be under 5% as of now.

 

Food is going to skyrocket.

Who is left to pick crops and process meat?