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The Federal Reserve (FED) Musalem: We should not commit to cutting interest rates before the impact of tariffs on inflation becomes apparent.
[The Federal Reserve] Musalem: No Commitment to Rate Cuts Until the Impact of Tariffs on Inflation Becomes Apparent. [The Federal Reserve] Musalem stated that if the rise in inflation proves to be temporary, expectations remain stable, and the economy clearly weakens, then rate cuts are still possible. The impact of tariffs on inflation may be temporary, but it could also be more lasting. No commitment to rate cuts should be made until the impact of tariffs on inflation becomes apparent. US economic activity has slowed, and sentiment has declined.