While some forecasts suggested up to two cuts in 2025, economists at JP Morgan Chase aren’t buying it. They expect just one cut, and not until December. Even further out, projections for 2026 and 2027 show fewer cuts than previously anticipated. Why the shift? According to Powell, it’s about managing inflation expectations and protecting the economy from premature policy changes.

Tariffs Are Fueling Inflation Worries

One of the meeting’s most discussed topics was tariffs. Powell made it clear: tariffs act like a tax on businesses that import goods. That cost doesn’t stay with the companies—it’s passed on to consumers. As a result, we’re already seeing price increases, and they’re likely to accelerate this summer.

This puts the Fed in a bind. If they cut interest rates too early, it could throw fuel on the fire, making inflation even worse. So, while rate cuts are on the horizon, they’re not coming just yet.

The Economic Outlook for 2025

Despite inflation concerns, Powell noted the U.S. economy is still resilient. However, he forecasted slower growth ahead—down to 1.4% in 2025, from a previous 1.7% projection. Unemployment is also expected to tick up slightly, from 4.4% to 4.5%.

These subtle shifts point to a cooling economy, but not a crisis. The Fed seems to be threading a needle: keeping inflation in check while avoiding unnecessary economic drag.

How the U.S. Compares Globally

While the Fed remains cautious, other central banks are going in the opposite direction. Switzerland, for example, cut interest rates to zero and hinted that negative rates could return. But Powell reminded everyone that U.S. challenges—particularly around tariffs—are different. The Fed isn’t likely to follow Europe’s lead anytime soon.

Market Volatility: The Tariff Effect

Investors are already feeling the heat from tariff drama. Markets have been volatile as policy announcements, pauses, and reversals create whiplash. One major date to watch: July 8th. That’s when the current tariff pause ends, and President Trump is expected to unveil his next steps.

Expect more turbulence. But remember—volatility doesn’t always mean bad news for investors.

What This Means for Investors

Powell’s advice? Focus on the long term. He likened investing during uncertainty to sailing—focus on the tides, not the waves. Trying to time the market based on short-term news is a losing game.

Instead, accumulate assets strategically. Downturns often offer great buying opportunities, especially for investors with a clear plan and a strong stomach.

Why Financial Education Matters Now More Than Ever

In today’s climate, understanding how your money works is essential. Powell urged Americans to get educated about investing—whether that means choosing between ETFs and mutual funds or understanding tax strategies.

He also recommended working with financial advisors—but only after doing your homework. Not all advisors are created equal, and it’s crucial to find one who truly aligns with your goals.

Bottom Line
The Fed is preparing to shift course in 2025, but it’s walking a tightrope between fighting inflation and supporting growth. Tariffs, economic indicators, and market volatility are all part of the picture. For everyday investors, the message is clear: stay calm, stay informed, and keep your eye on the long game.

Jaspreet Singh is not a licensed financial advisor. He is a licensed attorney, but he is not providing you with legal advice in this article. This article, the topics discussed, and ideas presented are Jaspreet’s opinions and presented for entertainment purposes only. The information presented should not be construed as financial or legal advice. Always do your own due diligence.

The post How the Fed’s 2025 Interest Rate Plans Could Change Your Financial Future appeared first on ROI TV.

That was the tone of this week’s meeting as we broke down recent labor reports, the Fed’s cautious stance on interest rates, and how investors can stay steady while the media spins every market dip into a headline. More importantly, we talked about how to manage money and build wealth through uncertainty not around it.

The ADP payroll report showed fewer jobs added than expected, rattling Wall Street, the White House, and the Fed. Then the Labor Department dropped their numbers for May surprisingly strong job growth. The bounce-back confused markets but eased fears of a slowdown, at least temporarily. The economy, it seems, might be stronger than we think.

Meanwhile, the Federal Reserve is playing a careful game. President Trump wants rate cuts now. Why? Lower rates mean cheaper borrowing, more spending, and a jolt to the housing and stock markets. Think: refinancing booms, cash-out loans, and more money circulating.

But the Fed’s holding back. Why? One word: inflation.

Tariffs, especially on Chinese goods, are still playing out in the background. They raise prices across the board from raw materials to consumer products. If the Fed cuts rates now and those tariff-driven price hikes hit, inflation could surge. That’s the tightrope the Fed is walking.

President Trump even suggested raising interest rates to combat tariff-induced inflation. The Fed, for now, is watching and waiting, with eyes on both the June and September meetings for potential moves.

So what does this mean for you?

Lower interest rates could mean a stronger housing market, more borrowing, and potentially a market rally. But they could also fuel inflation and asset bubbles. That’s why investors need to zoom out.

In the short term, markets may rise or fall depending on what the Fed signals next. But in the long run? It’s not about predicting the next move. It’s about sticking to a plan.

Warren Buffett said it best: “Time in the market beats timing the market.” That’s the mantra we’re holding onto.

Instead of reacting to every headline, focus on accumulating assets, diversifying your portfolio, and consistently investing even in downturns. The goal isn’t to avoid risk entirely it’s to manage it wisely with a long-term mindset.

Political tension, tariff talks, Fed feuds (yes, even the Trump vs. Elon narratives) they’re noisy, unpredictable, and emotionally charged. That’s why smart investors don’t let politics dictate their portfolios.

One of the best ways to stay grounded is to stay informed. We recommend subscribing to Market Briefs, a free daily newsletter that breaks down economic news in plain English stocks, crypto, housing, global markets everything you need to know to make smart decisions. It also includes access to an investing masterclass and in-depth reports via Briefs Pro.

In a world full of opinions and headlines, the smartest thing you can do is build wealth methodically, stay informed, and avoid emotional decisions.

Because the real risk isn’t the Fed it’s reacting without a plan.

Jaspreet Singh is not a licensed financial advisor. He is a licensed attorney, but he is not providing you with legal advice in this article. This article, the topics discussed, and ideas presented are Jaspreet’s opinions and presented for entertainment purposes only. The information presented should not be construed as financial or legal advice. Always do your own due diligence.

The post What the Fed’s Next Move Means for Your Money and How to Invest Through the Noise appeared first on ROI TV.

Let’s break down the economic trends and the smart strategies that can help you build wealth through the noise.

1. The Tentative Trade Deal with China: Hope with a Side of Uncertainty

Wall Street may be breathing easier after a preliminary trade agreement with China, but don’t break out the champagne just yet. While it reduces the likelihood of a 2025 recession, much remains unclear especially with the current tariff pause set to end after July 8th.

Tariffs could still return in full force. If they do, businesses will either absorb the rising costs (squeezing their margins) or pass them on to consumers triggering inflation.

Bottom line: This deal is good news, but we’re not out of the woods.

2. Recession Risks: History Offers Perspective

Yes, the U.S. economy contracted in the first quarter of 2025. But don’t panic. Recession technically requires two back-to-back quarters of decline, and unemployment remains low.

Since 1925, America has weathered 16 recessions more than one per decade. Each time, long-term investors came out stronger. If you’re playing the long game, history suggests staying the course through downturns is often the best move.

3. Tariffs and Inflation: A Dangerous Duo

Tariffs aren’t just a geopolitical bargaining chip they’re a direct contributor to inflation. Walmart recently confirmed it will raise prices due to import costs, and other retailers are likely to follow.

Although official reports claim inflation is “under control,” many fear that tariffs could reignite the fire, making everything from groceries to electronics more expensive.

If tariffs do push inflation higher, the Federal Reserve may hold off on rate cuts, even if the economy cools.

4. Interest Rates: Tug-of-War at the Fed

President Trump is pushing for interest rate cuts to spur the economy, but the Federal Reserve is cautious. Inflation concerns and the Moody’s downgrade of the U.S. credit rating from AAA to AA1 are reasons for pause.

Higher debt means more interest payments and investors now see U.S. debt as riskier. This could drive interest rates even higher, impacting everything from mortgage costs to business lending.

5. Investor Sentiment: More Powerful Than Policy

Here’s the wild card: emotion.

Investor sentiment has become a critical driver of market dynamics. Moody’s downgrade and uncertainty around tariffs have shaken confidence, but sentiment can shift quickly. A positive tariff resolution or rate cut could turn fear into FOMO (fear of missing out).

Smart investors stay grounded, not reactive.

6. The Debt Picture and Political Maneuvering

Consumer debt is ballooning. Americans are relying on credit to maintain lifestyles, while businesses wait for clarity before making major investments.

President Trump has floated major tax cuts and incentives for foreign investment, hoping to stimulate growth. But whether these policies materialize and whether they’re effective is still unknown.

For now, the best move is caution and strategy.

7. Long-Term Investment Strategies: ABB (Always Be Buying)

During uncertain times, the smartest strategy is often the simplest: Always Be Buying.

Whether you’re passive or active, here’s what works:

• Passive investors: Keep dollar-cost averaging into diversified funds like the S&P 500. Markets dip, you buy more shares. It’s that simple.
• Active investors: Look for businesses poised to benefit from tariff changes (e.g., domestic manufacturers), but know this carries more risk and requires research.

Remember: recessions create opportunities. Staying financially educated and invested during downturns often leads to long-term wealth.

Jaspreet Singh is not a licensed financial advisor. He is a licensed attorney, but he is not providing you with legal advice in this article. This article, the topics discussed, and ideas presented are Jaspreet’s opinions and presented for entertainment purposes only. The information presented should not be construed as financial or legal advice. Always do your own due diligence.

The post Wall Street Says the 2025 Recession is Cancelled appeared first on ROI TV.