The Federal Reserve, like a team of economists managing the US economy, is watching how President Trump's new policies might affect prices. They're trying to keep prices from rising too fast (inflation). It's tricky because some things are uncertain!
- The Fed wants to lower interest rates to help the economy.
- New taxes on goods from other countries could make things more expensive.
- Businesses aren't sure how these changes will affect them.
- Inflation is higher than the Fed wants (3% instead of their 2% goal).
| Fact | Number |
|---|---|
| Current inflation rate | 3% |
| Fed's inflation goal | 2% |
| Current interest rate range | 4.25% - 4.50% |
| Predicted number of rate cuts this year (market prediction) | 1 |
