Opinion: US Trade Uncertainty Will Keep the Fed Cautious

BlockBeats News, February 11th: Neil Shearing, Chief Economist at Capital Economics, stated that the uncertainty surrounding the U.S. trade policy under the leadership of Trump will have real-world implications, most notably seen in the Fed. In a report, he said that the Fed may face a once-in-a-century tariff price shock, or it could be a situation of much ado about nothing.

However, this uncertainty may be enough to keep Fed officials on the sidelines in the coming months. He mentioned that if high tariffs are ultimately implemented, the ensuing rise in inflation would prevent further policy easing for the remainder of 2025. Shearing said, "Many things depend on one person's whim." (FX Street)