Back to top
Join us on LinkedIn Follow us on Twitter Like us on Facebook Follow us on Instagram
 
  OCTOBER RESEARCH STORE Already a subscriber? LOG IN
AddControlToContainer_DynamicNavigation6

Federal Reserve acknowledges rising inflation, unemployment risks

Email A Friend Printer Friendly Version
0 comments
Banking, Financial Stability
Tuesday, May 13, 2025

The Federal Reserve announced there will be no change to the federal funds rate following the May meeting of the Federal Open Markets Committee (FOMC). The committee determined maintaining the target range at 4-1/4 to 4-1/2 percent was the best approach given economic indicators suggesting the risk of higher inflation and unemployment has increased. 

The committee acknowledged in a statement following the meeting that “swings in net exports have affected the data” while adding “recent indicators suggest that economic activity has continued to expand at a solid pace.”

While the unemployment rate remains relatively low and labor market conditions remain “solid,” the FOMC suggested inflation remains elevated and is not likely to come down amid ongoing economic concerns.

“Uncertainty about the economic outlook has increased,” according to the FOMC statement. “The committee is attentive to the risks to both sides of its dual mandate and judges that the risks of higher unemployment and higher inflation have risen.”

As the FOMC continues to evaluate evolving risk factors to financial stability, it said it plans to continue reducing the Fed’s Treasury security holdings, agency debt and agency mortgage‑backed securities.

The committee also reiterated its standing commitment to work toward bringing the inflation rate down to 2 percent and to ensure maximum employment.

According to a report published by the Department of Labor on May 13, the 12-month inflation rate is at 2.3 percent – its lowest since February 2021 – following a seasonally-adjusted 0.2 percent uptick in the consumer price index for the month.

Fed Gov. Adriana Kugler reflected on the perceived importance the American public places on the unemployment rate when evaluating the overall health of the labor market and the economy. She noted there are limitations affecting the various models the Fed uses to make such assessments.

“[D]ifferent business cycles are generated by different shocks that affect the economy in different ways, so that useful indicators of slack in past cycles may not be as insightful in the future,” Kugler explained. “For instance, when there is slack in the labor market, measures taking into account unemployment duration can be more informative about the persistence of unemployment and future slack. By contrast, when labor markets are tight, measures of flows into, out of, and across jobs will give a better measure of the job opportunities for workers and potential upward pressures on wages.”

There also are constraints on the number of economic indicators each model can process, implying that some models will be better at capturing certain drivers of maximum employment than others, she added.

“That is why I cannot point to the best statistic or best model of maximum employment. I can only acknowledge that a rich set of models and indicators only benefits the policymaker. Given the uncertainty in estimating maximum employment in real time and the many options available, I consider it undesirable to adopt one particular measure to guide monetary policy.”

Kugler emphasized the importance of keeping these points in mind as the FOMC prepares to release its statement on longer-run goals and monetary policy strategy, which the Fed alternatively refers to as its “framework.”

Today's other top stories
Senate questions Vought during CFPB semi-annual report hearing
AMC executive discusses what reverse mortgage professionals need to keep in mind in today’s market
Former CFPB director appointed secretary of new California consumer services agency
Fed releases details on task forces formed to advance monetary policy goals
Agencies release guidance on lending to individuals without legal work status


COMMENT BOX DISCLAIMER:
October Research is not responsible for the comments posted on its websites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments.
Comments:

Be the first to leave a comment.

Leave your comment
Please enter a comment.
CAPTCHA Validation
CAPTCHA
Code:
Please enter the word displayed in the image above. Please enter the word displayed in the image above.
: 
Please enter your name.
: 
Please enter your email address.
This field must contain a valid email address.
Your Email is for reporting purposes only. It will NOT be displayed.
Popularity:
This article has been viewed 7580 times.

Monthly Newsletter

Dodd Frank Update July 2026

Cover Story:

Trump refuses to sign massive housing reform bill until SAVE Act passes


News by Topic   News by Edition   News by Agency   News by Industry   Reports   Events
Banking
Case Law
Conference Coverage
Consumer Protection
Data Privacy
Financial Stability
Industry Spotlight
Legislation
Nonbank Financial
The TRID Journey
 
Dodd Frank Update June 2026
Dodd Frank Update July 2026
Archives
 
CFPB NCUA
CFTC OCC
FDIC OFR
FHFA SEC
FRB States
FSOC Treasury
FTC  
 
Appraisal
Broker-Dealer
Community Banks & Credit Unions
Land Title
Mortgage
Payday Lending
 
Housing Inventory Solutions
2026 State of the Industry
Banking and Crypto Regulation
Real Estate Compliance Outlook
CRA and Affordable Housing
Who's My Regulator?
Fair Lending
Mortgage Technology
Archives
 
National Settlement Services Summit (NS3)
Women's Leadership Summit (WLS)
Webinars

Library   About   Subscribe   Other Publications
Data Privacy Vault Court Actions
Keys to Real Estate podcast Enforcement Documents
Blog - Tuesdays with Mary Guidance Documents
1071 Compliance Guide White Papers
eClosing Solutions Showcase Position Papers
Executive Interview Series Legislation
Lender Associations Regulations
The Dodd-Frank Act Reports, Studies and Surveys
Dodd-Frank Summary & History Federal Register Notices
 
Dodd Frank Update
Contact / Editors
Advertise
Request a Media Kit
Social Media
Are You An Expert?
Subscriber Agreement
 
Subscriptions
Free Email Updates
Try a Free Edition
 
The Title Report
The Legal Description
RESPA News
Copyright © 2011-2026 Dodd Frank Update
An October Research, LLC publication
3046 Brecksville Road, Suite D, Richfield, OH 44286
(330) 659-6101, All Rights Reserved
www.doddfrankupdate.com | Privacy Policy
VISIT OUR OTHER WEBSITES
> The Legal Description
> RESPA News
> The Title Report
> NS3 The Summit
> Women's Leadership Summit
> October Research, LLC
> The October Store


Loading... Loading...
Featuring:
  • Delivery 3X a week plus breaking news as it happens
  • Comprehensive title insurance industry news
  • Recent acquisitions, mergers, real estate stats
  • Exclusive in-depth coverage of the industry's hottest stories
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • Comprehensive Dodd-Frank coverage
  • The latest information from the CFPB
  • Full coverage of Congressional hearings
  • Updates on all agency actions
  • Analysis of controversial provisions
  • Release of newest studies and reports
Sign up today and...
  • Be one of the first to know where NS3 is being held
  • Learn about NS3 speakers and sessions
  • Save on registration with Super-Early Bird rates
  • Discover the networking opportunities NS3 offers
  • Find out if CE credits will be offered for your area
  • And much more
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • Preview the latest RESPAnews.com Top Story
  • RESPA related headline news
  • Quote of the Week
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • Legal, regulatory and legislative information impacting the settlement services industry
  • News from HUD, Congress, state legislatures and other regulatory agencies
  • Follow the lobbying efforts of all the major national real estate services organizations.
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • The industry's only full-time newsroom
  • Relevant, up-to-date appraisal industry news
  • Covering the hottest stories and industry trends
TOPICS
EDITIONS
INDUSTRIES
REPORTS
PODCAST
WEBINARS
EVENTS
LIBRARY
FREE EMAIL NEWS
ABOUT
SUBSCRIBE
Appraisal News
Banking
Case Law
Conference Coverage
Consumer Protection
Data Privacy
Financial Stability
Government Agencies
Industry Spotlight
Legislation
Nonbank Financial
States
The TRID Journey
Appraisal News
Commercial Corner
Legal News
Market Watch
Technology Corner
Sponsored Content
CFPB
CFTC
FDIC
FHFA
FRB
FSOC
NCUA
OCC
OFR
SEC
Treasury
Current Edition
June 2026
May 2026
April 2026
Archives
Appraisal
Community Banks & Credit Unions
Land Title
Mortgage
Housing Inventory Solutions
2026 State of the Industry
2025 Voice of the Appraiser
Banking and Crypto Regulation
Expanding Your Appraisal Business
Real Estate Compliance Outlook
Who's My Regulator?
CRA and Affordable Housing report
Archives
NEW 2026 Economic Outlook Series
Next-Level Leadership
Life After RESPA
Taking Ownership of Consumer Protection
FinCEN Real Estate Report Demo
2026 Industry and Regulatory Outlook
FinCEN's Residential Rule Explained
Webinar Archives
National Settlement
Services Summit (NS3)
Women's Leadership
Summit (WLS)
Housing Inventory & Attainability Watch
Podcast - Keys to Real Estate
Data Privacy Vault
Blog - Tuesdays with Mary
eClosing Solutions Showcase
1071 Compliance Guide
Executive Interview Series
Lender Associations
The Dodd-Frank Act
Dodd-Frank Summary
Court Actions
Enforcement Documents
Guidance Documents
White Papers
Position Papers
Legislation
Regulations
Reports, Studies and Surveys
Federal Register Notices
Proposals
Final Rules
GAO
Agency
Contact Us
Advertise
Request a Media Kit
Social Media
Are You An Expert?
Subscriber Agreement
Try a Free Edition