Fed's Musalem: Should not commit to rate cuts until tariff impact becomes certain

From finance.yahoo.com

The Fed should not commit to further interest rate cuts until it is clear whether the Trump administration's tariff policies lead to persistent inflation or a less serious, one-time adjustment in prices, St. Louis Fed President Alberto Musalem said on Friday. Musalem said he currently puts even odds on either of the two paths for inflation. In theory, tariffs should prompt a one-time price jump similar to the imposition of a tax; but coming off the heels of recent high inflation the effect could be longer-lasting, and may also be more persistent since the new levies hit intermediate goods, for example. That's a ... (full story)