Tim Murray, strategist at T. Rowe Price, predicts the Federal Reserve will maintain its current policy until uncertainties surrounding tariffs subside or a significant deterioration occurs in the labor market. He expects that the Fed will likely avoid cutting rates, as this is not considered an effective solution to the uncertainty driving market volatility. While acknowledging that lowering interest rates might be tempting for addressing inflation, the Fed remains hesitant about it due to potential increases caused by tariffs. Instead of offering forward guidance or ‘political messages’, Murray anticipates the Fed will follow a data-driven approach, focusing on objective assessments to guide its policy decisions.