The Federal Open Market Committee is expected to hold rates steady at its upcoming decision on June 18, according to fixed income markets. However, the meeting may be significant in shaping expectations for monetary policy for the remainder of 2025. That’s because policymakers will update expectations for the Summary of Economic Projections, which includes a forecast for interest rates. This may, in turn, depend on data on jobs and inflation in the weeks leading up to the meeting. The State of The Economy At a speech on May 15, Fed Governor Michael Barr said, “In my view, the economy is…

The U.S. has been ignoring its fiscal condition and its credit rating for decades. Even now that Moody’s, following Standard & Poor’s (technically, S&P Global these days) and Fitch’s Ratings, downgraded the U.S. credit rating from the top AAA to AA+, many people won’t care. Nothing may happen immediately, meaning that politicians might not act, thinking that all will be well. In the short run, it might seem that way. In the long run, probably not. The drop in rating is ultimately important in itself, but the true issue is how the country treats its budgets and debts. I asked…