Federal Reserve Faces Economic Crossroads as Markets React to Tariff Policies

The Fed is expected to hold interest rates steady while assessing the economic impact of President Trump's trade measures and market volatility.

President Trump's tariffs on steel, aluminum, and goods from key trading partners have heightened fears of a trade war and recession, impacting global markets and economic forecasts.
U.S. stock markets entered correction territory, with the S&P 500 down 10% from its February peak, reflecting declining consumer confidence and uncertainty over trade policies.
The Federal Reserve is anticipated to maintain its current interest rate at Wednesday's meeting, as officials weigh inflation pressures against a slowing economy.
Treasury Secretary Scott Bessent acknowledged the possibility of a recession but described market corrections as 'healthy' and defended the administration's long-term economic strategy.
U.S. consumer spending has shown resilience, providing some stability to the economy, even as business activity weakens due to tariff-related disruptions.