The Federal Reserve’s first FOMC meeting of 2025 is currently underway, concluding on Wednesday, January 29, when the central bank will announce its latest action on interest rates. Many expect Fed officials to hold rates steady as inflation cools and the labor market remains strong.
However, TIAA Wealth management CIO Niladri Mukherjee warns host Brad Smith that economic growth could reignite inflation, particularly as the labor market stays robust and consumer spending remains high.
Mukherjee says the “pace of growth” the US economy is seeing “is quite remarkable" and presents a challenge for the Federal Reserve.
“You have a labor market which is still pretty strong, creating jobs at a consistent pace. The unemployment rate is low from a historical perspective. Whoever wants a job basically has a job at this point in time," Mukherjee adds, while noting "consumers really haven’t slowed down their pace of spending."
In the video above, hear Mukherjee highlight five factors that could keep inflation above the Fed’s 2% target, touching on changes in immigration policy, tariffs, tax cuts, and growing deficits.
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