Brusuelas said the Fed was facing “a difficult policy position” because hiking tariffs on some of the country’s biggest trading partners could simultaneously increase price pressures and weaken the US jobs market, each of which would support opposing interest rate decisions.

Key Takeaways The Federal Reserve is widely expected to keep its interest rate flat at Wednesday's policy meeting.Fed officials are reluctant to make any monetary policy moves while they wait to see what President Donald Trump's economic policies will be enacted and how they'll affect the economy.

The Federal Reserve is seen restarting interest-rate cuts in June, traders bet on Tuesday, as government data showed U.S. producer prices were unexpectedly flat last month and weekly jobless claims fell.

Next week's Fed rate announcement could impact how much you can earn on savings accounts and CDs going forward. Here's what seems most likely right now.

When the FOMC meets next week, members will have more to consider than inflation rate targets and the job situation. See why Fed will unlikely change rates.

Cooler inflation could allow Federal Reserve policymakers to resume interest-rate cuts later this year, with traders betting Tuesday on three quarter-point reductions in the policy rate by the end of 2025,

The Federal Reserve will keep interest rates steady through the first half of the year, before delivering two reductions beginning in September, according to economists surveyed by Bloomberg News.

The Federal Open Market Committee is expected to vote next Wednesday on whether to raise, lower or maintain interest rates at current levels amid heightened concern that a recession may be looming for the US economy.

American families are growing sharply less optimistic about the economic outlook, but the Federal Reserve may be loathe to respond aggressively to a weakening economy in light of increasing worries that the Trump administration's trade policy will boost already elevated inflation.