FOMC

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BY SUZANNE HAZLETT, MBA, CIMA®, CFP®

Suzanne Hazlett, MBA, CIMA®, CFP®, founder of HAZLETT WEALTH MANAGEMENT, is a Certified Investment Management Analyst® and CERTIFIED FINANCIAL PLANNERTM professional.

At the end of the May Federal Open Market Committee (FOMC) meeting, the Fed kept interest rates unchanged, as expected. The Fed indicated, “Uncertainty about the economic outlook has increased further.” They also noted that while U.S. net exports grew slower, the employment market remained strong, and inflation remained “somewhat elevated.”
Some have interpreted these statements as accepting that the economy’s risks for stagflation have increased. Stagflation, by definition, is persistently high inflation combined with high unemployment and stagnant demand in the country’s economy.
Key Takeaways of Commentary by Federal Reserve Chairman Jerome Powell:

  • Inflation expectations have moved up, but longer-term inflation expectations are at a level consistent with the inflation target.
  • Tariffs have been larger than anticipated.
  • Inflation will increase, and economic growth will slow if these tariffs remain.
  • We are in a good position to wait for more certainty on the future environment.
  • A great deal of uncertainty exists about the potential for employment and inflation.
  • The Fed is in a good place to wait and see what the evolution of the economy is.
  • The underlying inflation picture is in a good place. Still, there is so much uncertainty that we are not hurrying to change policy.
  • We are comfortable with the current policy stance.
  • We cannot be preemptive at this time because we need more information.
  • The pressure from President Trump does not affect our decision on interest rates.
  • The downside risks to the economy have increased but have not materialized yet.

The next FOMC meeting takes place June 17 and 18, 2025.

Suzanne Hazlett, MBA, CIMA®, CFP®, is a Certified Investment Management Analyst® and CERTIFIED FINANCIAL PLANNERTM professional. Investment advisory services are offered through Raymond James Financial Services Advisors, Inc. Securities are offered through Raymond James Financial Services, Inc., member FINRA/SIPC. The information has been obtained from sources considered to be reliable. Still, we do not guarantee that the foregoing material is accurate or complete. This information should not be construed as a recommendation. The foregoing content is subject to change at any time without notice. The content provided herein is for informational purposes only. There is no guarantee that these statements, opinions, or forecasts provided herein will be correct. Economic and market conditions are subject to change. HAZLETT WEALTH MANAGEMENT, LLC is independent of Raymond James and is not a registered broker/dealer. 675 Sun Valley Road, Suite J1 + J2, Ketchum, Idaho, 83340 208.726.0605 HazlettWealthManagement.com