Charlottesville, VA (CVILLE RIGHT NOW) – As the Federal Reserve prepared to announce its latest decision, University of Virginia Economics Professor Ed Burton joined Morning News to share his expert analysis. When asked if the Fed would respond to political pressure for rate cuts, Burton was direct: “What they will do is absolutely nothing… Powell will try to be as politically innocuous as he can be. He certainly doesn’t want to alienate the president, but he won’t do anything.” He pointed to treasury yields aligning with the Fed’s target range as a clear indicator no policy changes are imminent. 

Burton also addressed the April jobs report and broader economic trends. “The jobs numbers look good,” he said, noting that while GDP dipped slightly due to slowed consumer demand, “there are not convincing signs we’re heading for a recession.” Still, he expressed caution about long-term stability, citing past missteps in monetary policy and warning that zero interest rate environments are unlikely to return. 

On the topic of tariffs and trade, Burton emphasized the benefits of global commerce. “Trade with China is a good thing, not a bad thing,” he asserted, adding, “There’s no such thing as a bad trade. Both sides have to agree to it.” He predicted the President would soon “declare victory” and roll back some tariffs, particularly with China. Closing on the state of the economy, Burton noted, “If you go by the hard data… it still says the economy will continue to move forward.” 

Listen to the full conversation here: