Charlottesville, VA (CVILLE RIGHT NOW) – The Federal Reserve is expected to maintain its current interest rate policy following its latest meeting, according to Dr. Edwin T. Burton, a professor of economics at the University of Virginia. Speaking on WINA Morning News, Dr. Burton noted that while Chair Jerome Powell will make a formal announcement, no significant policy changes are anticipated. “Let me tell you what he’s going to tell you, he’s going to say there’s no change,” Burton said. He emphasized that economic uncertainty continues to influence decision-making, with both inflationary and recessionary forces at play. 

Dr. Burton also highlighted the ongoing struggle with high mortgage rates, which remain between 6.8% and 7.25%. “It makes it tough for folks that want to buy a home… that’s going to stay there.” he said. Retail and airline industries are also feeling the strain, with companies like Delta, Target, and Walmart reporting lower-than-expected revenues. Burton pointed to growing credit card debt and weakening consumer spending as signs of economic slowdown, particularly among lower-income households. 

Adding to economic concerns is uncertainty surrounding tariff policies. Burton explained that potential changes to tariffs on European, Canadian, and Mexican imports, expected to be clarified on April 2, are causing businesses to be cautious with hiring and pricing strategies. “The lack of clarity is not helpful,” he said. While some see unpredictability as a strategic move, Burton warned that in the case of tariffs, it is “hurting the economy.” 

Listen to the full conversation here: