Key Takeaways The looming trade war between the U.S. and its largest trading partners is making some officials at the Federal Reserve more cautious about moving interest rates.The Fed was already in "wait and see" mode,

Tariffs on U.S. goods and services may complicate the Federal Reserve’s decision making as market expectations for 2025 interest rate cuts decline.

Two Federal Reserve officials warned on Monday the large-scale tariffs now being pursued by the Trump Administration come with inflation risks, even as they stopped short of saying how that's affecting their thinking about monetary policy in a climate of notable uncertainty.

Economists predict that the Trump administration’s trade policies could push up prices for consumers, making it harder for Fed officials to cut rates.