Fresh tariffs amid high inflation are making the Fed’s job uniquely difficult and feeding uncertainty about what to expect for interest rates this year.

Chicago Federal Reserve President Austan Goolsbee said inflation data released on Friday was a bit better than expected and gives him comfort that inflation is on path to the 2% target, adding that he still expects the U.

Most people pay little attention to the Federal Reserve and monetary policy. But they have an outsized impact on your bank accounts.

The central bank needs to see further progress on inflation or weakness in the labor market to resume interest rate cuts.

Policy changes: When the Fed adjusts the federal funds rate, it spills over into many aspects of the economy, including mortgage rates. The federal funds rate affects how much it costs banks to borrow money, which in turn affects what banks charge consumers to make a profit.

The Federal Reserve on Wednesday hit pause on interest rate cuts in its first key decision of President Donald Trump’s second term.