#FOMCMeeting

Federal Reserve officials were in a communication "blackout" during the last week ahead of the meeting, but before going silent, members of the Federal Open Market Committee stated that they wanted to see how the economy would react to Trump's tariffs before taking any policy actions.

Tariffs pose a double threat to the Federal Reserve's dual mandate to maintain low inflation and high employment: not only can import taxes raise prices, but they can also hurt the economy, potentially increasing unemployment. If inflation proves to be a greater threat, the Fed may keep interest rates elevated for a long time, or alternatively, may lower rates to save the economy if the labor market starts to deteriorate.