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Fed May Hold Rates Steady for Months

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Created December 21, 2025

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Video Transcript

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Here’s what you might have missed in monetary policy news today. The Federal Reserve’s

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Cleveland president signaled that after recent cuts, the central bank may hold interest

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rates steady for months because inflation risks remain stubborn. Even with inflation at about 2.7%,

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she argues that traditional measures may understate price pressures, and that farther

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cuts aren’t guaranteed until clearer data emerges. That means markets might be pricing

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in easier policy too fast, and investors should watch inflation, employment,

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and tariff-related input prices closely as we enter 2026.

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