Fed, under pressure to cut rates, tries to balance labor market and inflation – while avoiding dreaded stagflation
- Written by Jason Reed, Associate Teaching Professor of Finance, University of Notre Dame
Interest rates are a tricky balancing act, as Fed Chair Jerome Powell knows well. AP Photo/Alex BrandonThe Federal Reserve is in a nearly impossible spot right now.
Markets are expecting a quarter-point interest rate cut to a range of 4% to 4.25% when the Fed policy-setting committee concludes its latest meeting on Sept. 17, 2025. After all, the slo...