The Federal Reserve will emphasize a wait-and-see stance

Weissman, Chief Economist and Portfolio Manager of MFS Investment Management, stated in a report that Federal Reserve Chairman Powell is almost certain to express a wait-and-see attitude at this week's meeting. The chaos of US tariff policies makes the future macroeconomic outlook particularly difficult to predict. The Federal Reserve will also note that inflation caused by tariffs, even if theoretically considered temporary, may result in more persistent real inflation. Therefore, without clear signals indicating that the economy is substantially weakening, the Federal Reserve will be unwilling to relax policy. In other words, without actual economic deterioration, the Federal Reserve may postpone interest rate cuts if necessary.