In yet another episode of ‘As The Federal Reserve Turns,’ we find ourselves in a holding pattern as Fed officials recently convened to discuss the economic rollercoaster that is inflation. Spoiler alert: they decided not to cut interest rates, citing a precarious inflation outlook and a seemingly endless cycle of economic uncertainties.

At their January powwow, the Fed folks tossed around the idea that our old friend inflation might be gearing up for a comeback tour. According to the minutes from the meeting, everything from consumer spending to President Trump’s ever-controversial tariffs and his mass deportation plans could potentially push those pesky prices even higher. In case you missed it, inflation was already on the rise, with consumer prices climbing 3% in January alone, up from a comforting 2.4% in September , definitely not the trend we were hoping for.

So what does this mean for you, the average Bay Area millennial or Gen Z-er trying to navigate the treacherous waters of housing markets, loans, and credit cards? It means the cost of borrowing isn’t likely to get any more bearable anytime soon. The Fed has kept its key interest rate steady at 4.3%, which feels quite ironic considering how all of us are collectively besieged by rising living costs. And in a twist that only Wall Street could appreciate, investors predict that the Fed might not budge until July , with a second potential cut not happening until 2026. Good luck with that.

Everyone’s on the edge of their seats, waiting to see how the upcoming tariffs might impact inflation rates. While most economists seem to think prices will climb due to these tariffs, a hopeful few believe that reducing regulations might soothe those rising numbers over time.

Fed Governor Christopher Waller chimed in with a glimmer of optimism, suggesting that if the January price hike turns out to be a one-off anomaly, we might be in for some rate cuts later this year. He remains skeptical, however, about the long-lasting effects of the tariffs on inflation , a bit like believing in fairy tales when you’ve seen the reality of the housing market.

In the end, the Fed’s latest move might be likened to holding your breath before taking the plunge into a pool of uncertainty. With inflation lurking around the corner and interest rates remaining unchanged, it appears we’re all going to have to be a little more cautious in our financial escapades. Time to tighten those purse strings, my friends. Italicize economic uncertainty is the new chic.