Federal Reserve officials on Wednesday pointed to the large policy uncertainty around tariffs and other issues arising from the early days of President Donald Trump's administration as among the top challenges in figuring out where to take U.

Federal Reserve officials take great pains not to comment on fiscal policy, but the looming threat from tariffs is forcing their hand.

Vice Chair of the U.S. Federal Reserve, Philip Jefferson, said on Wednesday that he’s in no rush to change the central bank’s policy rate. According to a Reuters report, the VC mentioned that the current policy is restrictive despite cutting rates by 100 basis points in late 2024.

Tariffs on U.S. goods and services may complicate the Federal Reserve’s decision making as market expectations for 2025 interest rate cuts decline.

The Federal Reserve on Wednesday hit pause on interest rate cuts in its first key decision of President Donald Trump’s second term.

Morgan Stanley joined Barclays and Macquarie in forecasting a single 25 basis point interest rate cut by the U.S. Federal Reserve this year, citing uncertainty from President Donald Trump's tariff policy.