Federal Reserve’s Cautious Approach Amid Economic and Trade Uncertainty
Federal Reserve Chairman Jerome Powell emphasized patience in adjusting interest rates amid economic uncertainty driven by Trump administration policies. Trade tensions, tariffs, and inflation expectations remain critical concerns, with markets reacting to shifting fiscal strategies. The Fed is closely monitoring economic data, maintaining flexibility to respond as needed. As bond yields rise and growth forecasts fluctuate, investors face heightened volatility. Powell’s cautious stance signals a wait-and-see approach as policymakers assess the evolving impact of trade, taxation, and deregulation on the economy.