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Inflation isn't going anywhere, and we are becoming less likely to see significant interest rate cuts this year. So why is the Fed failing to fix all this? Well, the truth is, this isn't just a job for the Fed. The Biden administration needs to work with the Fed to bring inflation down, and so far, they haven't done that.
Financial advisor Richard Rosso told KTRH, "As long as this government continues to spend, the Fed is going to be stuck, and they won't be able to lower interest rates." He says what we have is essentially the Fed and the Biden administration fighting back and forth with each other. Biden continues to spend, which brings inflation up, and offsets any measures the Fed may have taken.
Rosso says because of all this, we are unlikely to see significant rate cuts. At this point, we may be lucky to see even one this year.