Central Banks
Fed Leans Against Inflation and Away From Preemptive Rate Cuts
Jerome Powell
Photographer: Chip Somodevilla/Getty Images
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Federal Reserve officials are prepared to hold their policy rate steady to minimize the risk that President Donald Trump’s tariffs trigger a persistent rise in inflation, even if the labor market softens further.
In public comments and interviews, a number of officials have sent a clear signal they are ruling out interest-rate cuts that would act as an insurance policy against any tariff-induced economic slowdown.