Fed officials split over tariff impact, urgency of rate cuts

Odaily Planet Daily News The new economic forecast released by the Federal Reserve this week predicts slower economic growth and higher inflation. However, policymakers still expect to cut interest rates later this year - indicating that they do think tariffs will push up prices, but not last. However, opinions are very different: among the 19 officials, seven policymakers believe that no interest rate cuts are needed this year, and eight believe that two interest rate cuts are needed, which is consistent with investors' views on the Fed's 25 basis point cuts at the September and December meetings. Another two expect one interest rate cut and two expect three interest rate cuts. Fed Governor Waller and Fed Barkin expressed their views on interest rates after the resolution. The former believes that interest rates will be cut as early as July, and the latter believes that there is no rush to cut interest rates. Although neither Waller nor Barkin clearly stated their specific views on interest rates, they occupied two extremes in terms of the extent to which Trump's tariffs will affect prices, employment and economic growth in the coming months. (Jinshi)