On April 1st, Thomas Barkin, President of the Richmond Federal Reserve, stated that clear information about the impact of tariffs would take some time to obtain. To cut interest rates, confidence in inflation is necessary.
The stagflation characteristics of the 1970s were marked by disrupted inflation expectations; however, such a situation is not currently observed. Concerns remain about inflation and employment. There is no urgency to cut interest rates.
The reduction of the balance sheet may be slower and last longer. (Jin Ten)