Federal Reserve could cut interest rates this year, but for 'bad' reasons

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Federal Reserve could cut interest rates this year, but for 'bad' reasons - Business Standard

Quick Summary:

What were once seen as good news rate reductions in response to a steady decline in inflation back to the Fed's target of 2%, now could become bad news cuts that would be implemented to offset an economy struggling in the wake of widespread tariffs, rapid cuts in government spending, and a spike in economic uncertainty.

Even as the economy undergoes what may be wrenching changes, the Federal Reserve on Wednesday is expected to signal it could cut its key interest rate twice this year - the same forecast it issued in December.

The Fed had rapidly raised its rate to combat inflation, and as price growth headed lower, that allowed the central bank to reverse some of those rate hikes.