Fed Officials Divided on Inflation Concerns Amid Tariff Debates
Federal Reserve officials remain sharply divided on the urgency of addressing inflation, with debates centering on the impact of tariffs and immigration policies. Three policymakers argued for maintaining higher interest rates, citing persistent inflationary pressures exacerbated by recent tariffs. In contrast, TRUMP appointee Stephen Miran dismissed tariff-related inflation risks, predicting a natural decline due to stricter immigration controls.
The Fed's indecision creates uncertainty for markets, particularly as borrowing costs remain elevated since 2022. This policy limbo could Ripple through risk assets, including cryptocurrencies, as investors weigh the implications of prolonged restrictive monetary policy against potential rate cuts later this year.
