Canada just cut rates again because of the threat of a mild recession due to Trump trade policy. They are concerned however about inflation which puts them in a bind here. Ironically, Canadian and European markets are safer then US markets because of the huge run up in the main stocks on US markets. Gold at $3000 is telling you something.
Well, that's the answer - as it frequently happens, common sense is not a replacement for data. The Fed is looking at both unemployment (pretty low by historical standards and stable at the moment) and inflation (upside risks due to government policy and lingering upside risks due from the pandemic aftershocks). There is also a consideration for the strength of the currency, a downside shock to rates will make US assets even less attractive to the rest of the world. So they are staying put for the time being and watching how the market develops.
I looked on the data too. Maybe on more other data the FED is looking. Micro data as a whole are also important. Then there is a delay in the FED actions. Also they should be happy when a US president can make a qualified comment about the FED policy. As there have not been any US president so far with his own custom economic models, he needed for his real estate business. The US press is always looking for scandals because negativity and sensations are best for their sales to the public. They want to interprete and write for max. sales they can get to make the most money out of any news. This is also common in other countries. Here in Germany I can watch this behavior from the German press too. They are always looking for any upcoming scandals (making an "elephant" from nothing) and disputes and hoping or writing/publishing for "the worst". Negative news are much better sold than any positive news. These are facts. The Time for serious press is mostly gone. They got a lot of pressure because of free internet and the free news inside in the last years. It has made the situation worse for any press. Profits from news has been eroding over the last decade. It is difficult to survive in such an environment for any press. So I have to read more between the lines and filter more as I am only interested in the facts and not the involved speculations and interpretations. I make my own conclusions based on the data and facts.
TrAndy using common sense. That would be a first time on this board. And his common sense tells him The Fed is out for revenge (I wish they were). Now who the frick does that sound like?
As of February 2025, the U.S. annual inflation rate was 2.8%, a slight decrease from January's 3.0%. Core inflation, which excludes volatile food and energy prices, stood at 3.1% over the same period. bls.govusafacts.org The Consumer Price Index (CPI) increased by 0.2% in February on a seasonally adjusted basis, following a 0.5% rise in January. Notably, food prices saw a modest increase of 0.2% in February, with egg prices surging by 10.4%. bls.govfoxbusiness.com These figures indicate that while inflation is gradually decreasing, it remains above the Federal Reserve's target of 2%. In other words: No.