Fed officials adopt cautious approach to inflation from oil shocks and tariffs

9 articles · Updated · Barron's · Apr 29

Chair Powell emphasized the U.S. has experienced inflation above 2% for five years and noted the committee's vigorous discussion on future rate policy.
Officials are already looking through the tariff shock but remain wary of reacting prematurely to energy-driven inflation, preferring to see progress before considering rate cuts.
This stance follows previous indications to maintain current rates amid concerns over Iran war energy shocks, with the Fed closely monitoring labor market stability and inflation expectations.

As a new Fed chair prepares to take over, is a major monetary policy shift imminent?

With war driving inflation, is the Fed's 'wait and see' approach risking a 1970s-style crisis?

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