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The Federal Reserve has maintained key interest rates unchanged at 4.25%–4.5%, as announced in their latest meeting. Despite “tariff inflation” and “elevated uncertainty” highlighted by Fed Chair Jerome Powell, internal projections suggest a majority of members favor potential cuts, with two quarter-point rate cuts predicted within the year.
Recent data shows that the Consumer Price Index (CPI) rose 2.4% year over year in May, with core CPI climbing 2.8%. Retail sales have declined for two consecutive months, including a 2.7% drop in building materials and a 3.5% fall in vehicle sales, indicating consumer caution despite lower gas prices. Meanwhile, housing starts fell to their lowest level in five years, influenced by rate pressures.
The annual realignment of the Russell indices will begin in June, potentially introducing significant buying pressure as stocks are added. The final lists will be announced on June 27, with trading on the new stocks commencing on June 30.
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