The 5 'structural changes' pointing to a Fed rate pause
The Federal Reserve's upcoming interest rate decision has markets (^DJI, ^IXIC, ^GSPC) on edge, particularly as President Donald Trump advocates for rate cuts. Goldman Sachs vice chairman Robert Kaplan joins Market Domination to share his perspective regarding the central bank's likely approach. Kaplan calls current inflation progress "sideways," noting mixed economic indicators. He suggests that a pause at the upcoming meeting would be "appropriate," given the Fed has already implemented 100 basis points in cuts. The former Federal Reserve Bank of Dallas CEO and president identifies "five big structural changes" influencing the economic landscape: government spending restructuring, regulatory reviews in each industry aimed at productivity enhancement, efforts to "improve the whole energy ecosystem," ongoing deportation initiatives, and future tariff strategy. Kaplan says that uncertainty surrounding the Trump administration's policies in these areas provides "another reason to pause." Regarding Federal Reserve Chair Jerome Powell's anticipated announcement, Kaplan expects a pause but advises against specifying its duration. "He's really got to wait until they have conviction on what they're seeing and [until] they see demonstrable evidence of inflation improvement before they could take any next step," Kaplan explains. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. This post was written by Angel Smith
