The Federal Reserve will remain on pause until either tariff-related uncertainty fades or there is a clear deterioration in the labor market, said Tim Murray at T. Rowe Price.
The capital markets strategist doesn’t expect a “Fed put” in the form of an interest-rate cut over the near term.
Fed policymakers know that lower rates aren’t a cure for uncertainty. The Fed is also reluctant to cut rates given the risk that tariffs will pressure inflation higher.