Fed officials split over tariff impact, urgency of rate cuts

Odaily News New economic projections released by the Federal Reserve this week predict slower growth and higher inflation. However, policymakers still expect a rate cut later this year - a sign that they do think tariffs will push up prices, but not for long. Opinions diverge widely, though: Seven of the 19 officials think no rate cuts are needed this year, while eight think two, in line with investors' view that the Fed will cut by 25 basis points at its September and December meetings. Two more expect one rate cut, and two expect three. Fed Governor Waller and Fed Governor Barkin expressed their views on interest rates after the resolution, with the former arguing that a rate cut could be made as early as July and the latter believing there is no rush to cut rates. Although neither Waller nor Barkin spelled out their specific views on interest rates, their statements were at two extremes in terms of how much Trump's tariffs will affect prices, employment and economic growth in the coming months. (Jin Shi)