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The US government has recently introduced protectionist policies, including tariff increases, and a number of officials of the US Federal Reserve Board have expressed concern that relevant policy risks will exacerbate the uncertainty of the US economic outlook.

John Williams, president of the Federal Reserve Bank of New York, said at an event at Pace University in New York on the 11th that the US economic outlook remains "highly uncertain", especially in the context of possible fiscal, trade, immigration and regulatory policies of the US government. He does not expect U.S. inflation to return to its 2 percent target this year and believes it will take time for the Fed to achieve its inflation target.

Williams told reporters after the event that the impact of the administration's tariffs on prices will depend on whether the policy is "targeted at consumer goods or intermediate goods." He believes the administration's 25 percent tariffs on imported steel and aluminum will have a more lasting impact on prices because the prices of these intermediate goods "filter into other goods and services."

The president of the Federal Reserve Bank of Cleveland, Beth Hammack, delivered a speech in Lexington, Kentucky, on the same day, supporting the Federal Reserve to maintain interest rates for "some time." She highlighted the impact that uncertainty over new government policies could have on the economy, including taxes, immigration and tariffs. It will take "some time" to analyze these policies and develop appropriate responses, she said.

Terry Sandwin, chief equity strategist at U.S. Bank Wealth Management, said factors such as persistent inflation and uncertainty over U.S. government policy are fueling global trade tensions. "Overall, [the US economy remains] highly uncertain, which means more volatility."

Federal Reserve Chairman Powell 11 attended the US Senate Banking Committee hearing, said that given the current US economic performance is good, the Federal Reserve is not in a hurry to cut interest rates. But the Fed could also cut rates in the future if the labor market unexpectedly weakens or inflation falls faster than expected.

The Fed has cut interest rates three times in a row since September 2024, totaling 100 basis points by the end of last year. In January, the Fed decided to pause rate cuts, citing somewhat high inflation and an uncertain economic outlook.

The Fed will hold its second monetary policy meeting of the year in March, when it is widely expected to keep interest rates unchanged.