From CNBC: 2025-05-28 14:17:00

Federal Reserve officials expressed worry about tariffs potentially aggravating inflation and complicating interest rate policy, according to meeting minutes. Despite concerns, policymakers decided to keep rates steady, citing solid economic growth and a balanced labor market. The committee remains cautious amid increased uncertainty about the economic outlook.

Officials have reiterated that they will wait for more clarity on fiscal and trade policy before considering any rate cuts. Market expectations reflect this sentiment, with futures traders now pricing in no chance of a rate cut until September. The easing of tensions between the U.S. and China has contributed to a Wall Street rally, though bond yields are climbing.

President Trump has urged the Fed to lower rates amid the trade war and signs of inflation nearing the 2% target. Fed Chair Jerome Powell has emphasized the central bank’s independence from political influence. Stay tuned for more updates on this evolving situation.

Read more: Fed worried it could face ‘difficult tradeoffs’ if tariffs reaggravate inflation, minutes show