Fed Stays Patient as Trump Tariffs Cast Uncertainty on Economy

Federal Reserve Chair Jerome Powell has indicated the US central bank will remain cautious and hold off on making any decisions regarding monetary policy, allowing for further observation of how President Donald Trump’s recent tariff hikes impact the economy. Powell made these remarks in Arlington, Virginia last Friday during a speech at a financial forum. He clarified that the Fed will not act reflexively in response to recent stock market losses or weakening investor sentiment. Instead, they plan to continue evaluating market conditions before taking action.