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Federal Reserve Balancing Inflation and a Slowing Economy

Picture of Scott Colbert Scott Colbert : July 14, 2025

Economy Economic Insights
Federal Reserve Balancing Inflation and a Slowing Economy

The Federal Reserve continues to keep a balanced eye on the inflationary impact of tariffs against cooling economic growth. In the latest Commerce Trust Market Brief video, Scott Colbert, Chief Economist and Director of Fixed Income Management, provides his latest perspective on rate cut timing going forward.  

  • Credit spreads in the corporate bond market may signal broader economic sentiment  

  • Markets remain focused on tariff impacts and the severity of inflation pass-through to consumers  

  • Inflation sees a slight uptick in June with potential for continued pressure  

  • The auto sector offers an example of how tariffs may impact consumer prices  

  • The Federal Reserve faces a conundrum as it weighs inflation risk against slowing growth to decide rate cut timing 



 

Read the transcript

 

 

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