Federal Reserve Chair Jerome Powell announced plans to cut rates in August, reversing a long-term fight against pandemic-era inflation. However, President Donald Trump’s tariffs have introduced uncertainty, complicating the Fed’s approach to inflation and interest rates. Experts suggest tariffs could increase inflation and threaten economic growth and employment. Policymakers await further clarity as investors expect the central bank to leave rates unchanged. The main challenge for the Fed remains balancing inflation risks with potential economic slowdowns.
— news from ABC News