The Federal Reserve’s cautious stance on interest rates has provided relief to investors struggling with the impact of tariffs, according to officials. The central bank acknowledges high uncertainty but remains open to further rate cuts. This sentiment has been welcomed by investors, who take comfort in the Fed’s awareness of economic risks.
However, many investors remain cautious about exposure to risk amid ongoing tariff tensions. The slowdown in quantitative tightening (QT) is seen as a mildly positive development for market stability.
The Fed’s balancing act aims to mitigate the effects of tariffs without exacerbating inflation concerns. As investors look ahead, they can expect the Morning Bid U.S. newsletter to provide insights into US and global markets.
Source: https://www.reuters.com/markets/wealth/feds-balancing-act-gives-respite-tariff-struck-investors-2025-03-20