The Federal Reserve to Emphasize a Wait-and-See Stance

MFS Investment Management's Chief Economist and Portfolio Manager, Wiseman, 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 U.S. tariff policy makes the future macroeconomic outlook particularly difficult to predict. The Federal Reserve will also note that inflation triggered by tariffs, even if theoretically considered temporary, could result in more lasting actual inflation. Therefore, without clear signals indicating a substantial economic downturn, the Federal Reserve will be reluctant to ease policy. In other words, without actual economic deterioration, the Federal Reserve may delay rate cuts if necessary.