Fed officials are waiting for more data on tariff impact before making any monetary policy changes

From Yahoo Finance: 2025-04-24 11:46:00

Federal Reserve officials are holding steady on monetary policy, citing a need for more data on the impact of Trump’s tariffs. Waller and Hammack express patience, with Waller predicting potential inflation effects to be temporary. Hammack remains open to policy changes by June pending clear data.

The Fed faces challenges navigating the impact of tariffs on economic momentum, amid an unpredictable implementation by the administration. Financial markets anticipate rate cuts later in the year, but the decision is complicated by conflicting signals on inflation and growth. Hammack remains cautious but open to policy changes if data warrants.

Hammack emphasizes patience on monetary policy, awaiting clear data before making any moves. She does not foresee easing at the upcoming FOMC meeting in May, stressing the need for convincing data before taking action. Hammack considers different economic scenarios in her outlook, highlighting uncertainty in the current environment.

Read more: Fed officials argue for patience while gauging tariff impact