#FOMCMeeting

With the Federal Reserve officials observing their customary "blackout" period ahead of the meeting, earlier comments from the FOMC highlighted a cautious stance. They signaled a desire to assess the economic impact of Trump’s tariffs before adjusting policy.

The tariffs present a challenge to the Fed’s dual mandate of maintaining low inflation and high employment. On one hand, import taxes could fuel inflation by raising prices; on the other, they risk weakening the economy and increasing unemployment. If inflation becomes the dominant concern, the Fed may maintain higher interest rates for an extended period. Conversely, if the labor market deteriorates, a rate cut could be considered to support growth.