Three reasons the Fed will stand pat on interest rates
Policy is rightly locked on hold over the near-term in part because the uncertainty surrounding the Trump administration’s tariffs remains unusually high.
First, the uncertainty surrounding the Trump administration’s tariff regime remains unusually high. Not only is tariff policy ever-changing in terms of countries, products, rates and rationale, but also the timeline for resolution continues to be pushed back, as evidenced by the April 1 and July 9 deadlines that have come and gone. Attention is now on the August 1 deadline, which is two days after the central bank next meets to set monetary policy.
