The Federal Reserve is currently navigating an unclear economic landscape. With Chair Jerome Powell mentioning ‘uncertain’ nearly 20 times during the latest meeting, the Fed refrains from making interest rate cuts, creating anxiety among investors.
Despite the S&P 500 being close to its record high, trading activity has been muted. Mixed economic signals, alongside rising geopolitical tensions, have left traders hesitant, unsure of how to position themselves for the latter half of 2025.
Amid rising tariffs, the Fed has adjusted its growth projections downward while increasing inflation estimates. With factory activity declining and inflation remaining stable, investors face significant uncertainty as they await clarity on the potential impacts of tariffs.
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