The Federal Reserve is closely tracking economic shifts in response to the ongoing trade war between the U.S. and other countries, as recently imposed tariffs have impacted numerous industries. This has led to a series of decisions for the Fed regarding potential rate adjustments based on reduced GDP forecasts. 2025 could bring further changes as new tariffs are implemented. The impact is being felt across key sectors like manufacturing and finance where businesses are adapting their strategies and economic projections are decreasing. The Federal Reserve is particularly navigating financial implications stemming from these uncertainties in the midst of a fluctuating market. Experts at J.P. Morgan, Michael Feroli and Chris Feroli, warn that heightened trade policy uncertainty could impact business investment, especially capital spending. The Fed must weigh the consequences of both tariffs and global GDP projections as they consider potential rate adjustments.