Federal Reserve Faces Tough Choices Amid Shrinking GDP and Rising Inflation

Reported about 8 hours ago

The Federal Reserve is grappling with conflicting economic indicators following a contraction in GDP and higher-than-expected inflation in the first quarter of 2025. This situation may force the Fed to balance its dual mandates of maximizing employment and maintaining price stability, especially as pressures from tariffs potentially increase inflation further. Financial experts predict a looming recession and a challenging path for the economy, which may prompt the Fed to consider rate cuts in response to weaker job reports.

Source: YAHOO

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