Why the Fed Funds Rate Stays High Despite Cooling Inflation

Lucas and Luna dig into the Fed's dilemma in June 2026: inflation is running at 4.2% annually, the Fed Funds rate is at 3.63%, and the economy is growing at a tepid 1.6% real GDP. They explore why the central bank isn't cutting rates despite a cooling labor market and a VIX that dropped 20% in a week. The hosts use the recent ECB rate hike, the surge in wholesale prices, and the stubbornly high core CPI to explain the delicate balance the Fed must strike. They also discuss the housing market's role in keeping shelter costs elevated, and what the disconnect between the Fed's rate and market expectations means for investors. A must-listen for anyone trying to understand the 'higher for longer' narrative in an uncertain economy. #FederalReserve #FedFundsRate #Inflation #CPI #MonetaryPolicy #ECB #CentralBanks #InterestRates #Economics #GDP #LaborMarket #Housing #ShelterCosts #VIX #MarketVolatility #FexingoBusiness #BusinessPodcast #EconomicForecast Keep every episode free: buymeacoffee.com/fexingo