The Federal Reserve is expected to keep interest rates unchanged at its upcoming meeting, which could be the final one chaired by Jerome Powell. President Donald Trump has repeatedly signaled his intent to remove Powell before his term ends, making this meeting a potential turning point for the Fed's leadership. No rate move is expected, with markets largely pricing in a hold as officials wait for more clarity on inflation and economic growth. Powell's tenure has been defined by the most aggressive rate-hiking cycle in decades, aimed at bringing down post-pandemic inflation. The Fed raised rates sharply from near zero to over 5% before beginning cautious cuts. The central bank now sits in a watchful stance, balancing sticky inflation against a slowing jobs market. The bigger story is what comes after. If Trump replaces Powell, the new chair could shift the Fed's tone toward faster rate cuts, which markets would reprice quickly. Bond yields, the dollar, and rate-sensitive sectors like housing and banking would all react to any credible leadership change. Watch for Powell's post-meeting press conference for any signal on his own read of the situation.
US inflation hit 4.1% in May 2026, its highest level in three years, driven by rising energy prices, keeping a Federal Reserve rate hike in September firmly on the table. Consumer spending rose on tax refunds and a stock market rally, while business investment in AI equipment also rebounded.
RBI data through May 2026 shows that its 85 basis point repo rate cuts since February 2025 are only partially reaching borrowers, with lending rate transmission described as moderated. Slower pass-through limits relief for loan holders and may pressure the RBI to cut rates further to achieve its growth goals.
U.S. consumer prices rose at a 4.2% annual rate in May, the fastest pace in three years, driven by a spike in energy costs. The reading puts pressure on the Federal Reserve to respond, with potential knock-on effects for interest rates, borrowing costs, and household purchasing power.
US inflation rose to a three-year high in May, driven by surging gas and energy prices tied to the Middle East conflict. The reading complicates the Federal Reserve's path toward cutting interest rates and keeps pressure on household budgets.
