Prudential Group: The Federal Reserve will remain inactive until tariff uncertainty subsides or the labor market deteriorates

According to Golden Ten Data, Tim Murray, a strategist at Prudential Group, stated that the Federal Reserve is unlikely to cut interest rates in the near future. The Federal Reserve will continue to maintain a wait-and-see attitude until tariff related uncertainty subsides or the labor market significantly deteriorates. Murray pointed out that Federal Reserve policy makers are aware that interest rate cuts are not the best way to address uncertainty, and the risk of tariffs pushing up inflation also makes the Fed unwilling to take interest rate cuts. He expects that the Federal Reserve will adhere to a policy approach that relies on data, avoiding providing forward guidance or conveying any information that may be interpreted as politicized.