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Will tariffs boost prices? The Fed can’t decide
The Federal Reserve, tasked with making sense of the US economy to set interest rates, has its work cut out for it. In two weeks’ time, the Fed is widely expected to lower borrowing costs for the first time since December. But what the central bank does after that is much less clear. Fed policymakers still don’t know the full extent to which President Donald Trump’s widespread tariffs could impact inflation — nor whether the US labor market is about to fall off a cliff, especially as signs of weakness are mounting. The Fed is dealing with one of its most complicated economic puzzles in decades. Both sides of ... (full story)