Episode

Why the Fed Funds Rate Stays Flat While the Economy Shifts

Podcast
The Economic Forecast Podcast with Fexingo: Predictions, Outlooks, and What's Coming Next
Published
Jul 17, 2026
Duration seconds
478
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not_requested
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https://audio.fexingo.com/business/the-economic-forecast-podcast/episode-0117.mp3
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https://audio.fexingo.com/business/the-economic-forecast-podcast/episode-0117.mp3
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Summary

On this episode of The Economic Forecast Podcast, Lucas and Luna dig into the Fed funds effective rate, which has held steady at 3.63 percent since April 2026, even as other parts of the economy show clear movement. They explore why the Fed is keeping the interest on reserve balances at 3.65 percent while inflation cools, wholesale prices drop, and the labor market tightens. The conversation covers the messaging challenge the Fed faces: if the economy is softening, why isn't the rate coming down? And if it's still strong, why did the PPI decline point to disinflation? They also look at how import prices, especially from China, are creating a counter-narrative. The hosts connect these dots to what it means for borrowers, savers, and investors in late July 2026. A tight, data-driven episode that helps listeners understand the current policy standoff and what might break the stalemate. #FedFundsRate #FederalReserve #InterestOnReserves #MonetaryPolicy #CPI #PPI #Inflation #ImportPrices #ChinaTrade #Disinflation #LaborMarket #JoblessClaims #WageGrowth #Economics #EconomicForecast #FexingoBusiness #BusinessPodcast #MacroEconomics Keep every episode free: buymeacoffee.com/fexingo