#FOMCMeeting

The Federal Reserve evaluates the impact of tariffs

In recent weeks, Federal Reserve officials have been reluctant to lower interest rates from their currently high levels, as they are concerned that Trump's tariffs may reignite high inflation, which has been reduced at an almost unstoppable pace from the Federal Reserve's target of 2% per year, after soaring in the post-pandemic era. For his part, Trump has frequently criticized the Federal Reserve for not cutting rates this year, even going so far as to label its chairman, Jerome Powell, as an "idiot".

A lower federal funds interest rate could boost the economy and encourage job creation, but it could also alleviate some of the downward pressure on inflation.

Fed officials have been under a "communication silence" during the past week leading up to the meeting, but before going silent, members of the Federal Open Market Committee (FOMC) said they wanted to see how the economy responded to Trump's tariffs before making any policy decisions.