Following a significant decrease in the federal funds rate by one percentage point during the latter half of 2024, the Federal Reserve has maintained the status quo this year. Observers do not foresee a reduction in rates until the fall. This cautious stance is due to unexpected tariff hikes early this year that could lead to stagflation, characterized by rising prices amid slow economic growth. Investors should remain alert to upcoming economic indicators to gauge the Federal Reserve’s potential actions on interest rates. Assessing these indicators can be crucial for investment decisions in a shifting economic landscape.