On this week's episode of THE FINANCIAL COMMUTE, Wealth Advisor Mike Rudow joins Chris to discuss the Fed's decision to keep rates high.
Here are some key takeaways:
- Trump recently criticized the Fed for keeping rates high and hinted at wanting to replace Powell.
- Inflation has been stubbornly high, making it risky for the Fed to cut rates prematurely.
- Chris says the Fed is in a difficult position right now as the economy is slowing, tariffs are creating uncertainty, unemployment might be ticking up, and inflation may continue to rise.
- Trump wants rates to come down because it could help stimulate businesses and increase borrowing/purchasing power for consumers. However, if we lower interest rates too quickly, it could potentially cause inflation to shoot up which would eventually increase rates.
- Chris and Mike agree that building resilient portfolios is even more important in volatile, uncertain times like now.
