U.S. Fed set to hold rates, assess impact of tariffs on inflation

The U.S. Federal Reserve is expected to maintain interest rates this week, despite recent inflation improvements, due to concerns over the potential impact of tariffs on price expectations, according to WSJ’s Nick Timiraos,. While inflation readings have been mild over the past three months, Fed officials are worried about how tariff-related disruptions could affect consumer and business price forecasts, which play a crucial role in shaping future inflation. The Fed will assess the economic impact of tariff increases, especially given the current uncertainty in trade policies, and will continue its cautious approach to rate adjustments.