This is CBS Eye on the World.

Here's John Batchelor.

Fed likely to pause rate cuts with clouds gathering over the economy is the headline from the Hill.

And I welcome an esteemed columnist from the Hill,

Elizabeth Peake, also writing for Fox News, to comment on the Fed suddenly no longer being

the major story every time the Fed meets. There are other competing narratives, peace in Ukraine,

war in the Middle East, and by the way, have you heard

about tariffs? Liz, a very good evening to you. The Fed is pausing rate cuts, which means they

continue to study the data. What are they looking for, Liz? Good evening to you. Good evening,

John. Well, look, they do have a dual mandate.

So their position is that until the labor market really shows significant signs of weakening,

which has not, they have no reason to step in and cut rates. I would point out that the same

thing could have applied last year,

and they did cut rates by a whole one percentage point over the course of several months. But the reality is right now they appear to be pretty content with the status quo.

One of the reasons the market picked up some steam yesterday and had a good second day

after a pretty awful week last week, is that people

began to think about rate cuts coming later in the year. And remember, you know, we've been back

and forth on this a lot, but there was a period where no one thought anyone was going to be

cutting rates because the economy continued to kind of move along at a pretty good clip and they

trump agenda was sort of engendering a lot of optimism investment etc so because of the tariff

talk uh consumers have gotten more worried about inflation inflation actually is not picked up

the the last couple of readings have actually been quite

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