JPMorgan expert explains why the Fed kept rates steady

The Federal Reserve decided to keep interest rates where they are. No change. You might be asking, “But what does that *really* mean? ”

Basically, they’re playing a waiting game. You’re baking a cake, and you’re not quite sure if it needs more sugar. You wouldn’t just dump a bunch in, right? You’d wait, taste it, and *then* decide.

Why the Hold-Up?

Fed Chair Jerome Powell said they don’t need to rush. They want to see how things shake out with the economy. Especially with those tariffs everyone’s talking about.

Everyone expects the tariffs to affect inflation. But how much? The Fed wants to see the full picture before making any big moves.

What the Experts Are Saying

Elyse Ausenbaugh, a big shot at J. P. Morgan Wealth Management, wasn’t surprised by the Fed’s decision. She wants some clearer signals from future meetings.

Melissa Cohn, who’s been in the mortgage game for over 40 years, says the next three months are crucial. What happens then will decide what the Fed does next. Tariffs and inflation could throw a wrench in any plans for future rate cuts.

The Bigger Picture

Here’s the thing: the Fed isn’t just looking at interest rates. They’re looking at the whole economy.

They’re trying to keep prices stable and get everyone working. It’s a balancing act, for sure.

But here’s what they’re predicting:

• Slower economic growth this year (1. 7% instead of 2. 1%).
• A slightly higher unemployment rate (4. 4% instead of 4. 3%).

What’s Next?

Honestly? We wait. The Fed held steady in January too. They cut rates three times before that. It’s all about seeing how the economy reacts.

The Fed’s goal is to keep the economy humming. Like a finely tuned engine. Sometimes, that means hitting the gas. Other times, it means tapping the brakes. Right now, they’ve got their foot hovering over the pedal.