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The Federal Reserve (FED) Musalem: We should not commit to interest rate cuts before the impact of tariffs on inflation becomes apparent.
Golden Finance reports that The Federal Reserve (FED) official Musalem stated that if the rise in inflation proves to be temporary, expectations remain stable, and the economy clearly weakens, then interest rate cuts are still possible. The impact of tariffs on inflation may be temporary, but it could also be more lasting. Before the impact of tariffs on inflation becomes apparent, one should not commit to cutting interest rates. Economic activity in the United States has slowed, and sentiment has declined.