Why the Fed Keeps a Window Open to Rate Hikes

The Fed's benchmark rate has been parked at 3.63 percent since July, but the July CPI report shows inflation at 3.4 percent, while the ten-year breakeven rate dipped to 2.27. In this episode, Lucas and Luna dig into the Fed's subtle signals that it hasn't closed the door to another hike—even as markets assume the next move is a cut. They discuss the central bank's language around 'adjustments' versus 'cuts,' why the two-year yield's recent rise complicates the narrative, and what the budget deficit's July surge means for Treasury supply. With the FOMC minutes due soon, they break down what to watch for in the Fed's own words. The hosts also touch on how AI's power-hungry data centers are feeding inflation in the services sector, a factor the Fed can't ignore. #FederalReserve #MonetaryPolicy #InterestRates #Inflation #CPI #FOMC #TwoYearYield #TreasuryYields #BreakevenRates #BudgetDeficit #AIDataCenters #ServicesInflation #RateHikes #RateCuts #Economics #FexingoBusiness #BusinessPodcast #Podcast Keep every episode free: buymeacoffee.com/fexingo