Federal Reserve Faces Uncertainty Due To Tariffs And Policy Challenges

According to Odaily, Federal Reserve officials highlighted on Wednesday that significant policy uncertainty, stemming from tariffs and other issues introduced during the early Trump administration, poses a major challenge in determining the direction of U.S. monetary policy in the coming months. Chicago Fed President Austan Goolsbee cautioned against overlooking the potential inflationary effects of tariffs, emphasizing that it would be a mistake. Meanwhile, Richmond Fed President Thomas Barkin noted that it remains unclear at this early stage whether the increased costs from any tariffs will be absorbed or passed on to consumers. These perspectives reflect the cautious approach Fed officials are taking as they decide whether to resume interest rate cuts later this year or maintain the current policy stance.