The Federal Reserve on Wednesday kept interest rates steady, between 4.25% and 4.5%, for the fifth time in a row, citing higher-than-average inflation and low unemployment.
Prices grew 2.7% in June compared with last year, according to data from the Bureau of Labor Statistics. At the same time, data show the national unemployment rate was at 4.1%.
The central bank tries to balance both of these figures — what’s called a “dual mandate” — while still working toward its target 2% inflation rate.
Bryan Cutsinger, an economics professor at Florida Atlantic University, said there are a couple of factors keeping inflation elevated nationally.
“Now that could be because you have some price pressures from tariffs, or you could have some lingering …pandemic money, … It could be that people are still spending off some excess balances,” he said. “Either way, we have a situation where inflation remains elevated.”
In the Tampa-St.Petersburg-Clearwater metro area, inflation is only slightly cooler than the national rate.
Prices grew 2.6% over 12 months ending in May, according to the latest data available for the metro area.
Year over year, residents saw the most price growth in food, housing and medical costs. Prices dipped for energy and transportation expenses, according to the data.
In June, unemployment for the metro area was at 3.8%, below the national rate.
Despite some economic uncertainty, a recent market survey by Edward Jones found that 74% of consumers remain optimistic about their financial future.
A Tampa-based financial adviser with the company, Jared Colao, said the survey took into account respondents’ concerns over recent volatility in the market.
“In March and leading into April, [there was] a lot of news and media that was popping up around that time, around tariffs and geopolitical tensions, and of course, that had investors on edge,” he said.
In June, the Federal Reserve Bank of New York also tracked improvements in consumer expectations. The survey, which is a measure the central bank often looks to, found that more households expect their financial situations to improve in the next year, and a smaller share of households expect the opposite.
Gabriella Paul covers the stories of people living paycheck to paycheck in the greater Tampa Bay region for WUSF. She's also a Report for America corps member. Here’s how you can share your story with her.
