The pivot from rate hikes in 2022 and 2023 to rate cuts was widely forecast, and a big reason behind the S&P 500's epic 24% return in 2024. Most thought the Fed would continue to put its foot on the economic gas pedal, reducing rates in 2025, too.

At least three Federal Reserve policymakers spoke out this week in favor of holding interest rates steady for the time being, in contrast to two who said they were open to the idea of cutting the fed funds rate in July,

Tom Barkin, president and CEO of the Richmond Federal Reserve, joins WSJ’s Take On the Week to discuss the future of monetary policy, the connection between consumer sentiment and spending, and why he’s in no rush to cut interest rates.