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FOMC Results Released: Possibly Only One Rate Cut This Year, or None at All!
Voting Result 11:1, Overwhelmingly Passed. Compared to last time when 2 people supported rate cuts, this time only 1 person remains.
The Federal Reserve suddenly turned hawkish, not because employment or GDP is underperforming, but because there are problems on the supply side:
👉 Oil Prices: Middle East conflict causing energy prices to skyrocket, previous two years of inflation-fighting efforts nearly wasted
👉 Supply Chain: Conflict leading to rising freight costs, commodity prices starting to pick up again
The Fed's logic is straightforward: If inflation might rebound due to external factors, then it's better to tighten too much than to ease too early.
This is the first time the Federal Reserve mentioned "war" in an official document.
The conclusion is clear: This year most likely maximum one rate cut, or possibly none at all
Thank Trump's Middle East war