Viewpoint: Uncertainty in U.S. trade will keep the Federal Reserve vigilant

ChainCatcher news, according to Jinshi reports, Neil Shearing, chief economist at Capital Economics, stated that the uncertainties related to U.S. trade policy under Trump will have real-world impacts, which is most evident in the Federal Reserve.

In a report, he mentioned that the Federal Reserve may face a once-in-a-century tariff price shock, or it could be a situation where there is much ado about nothing. However, this uncertainty may be enough to keep Federal Reserve officials on the sidelines in the coming months.

He indicated that if high tariffs are ultimately implemented, the resulting rise in inflation will prevent further easing of policies for the remainder of 2025. Shearing said, "A lot depends on one person's whim."