Whether they cut rates at the next policy meeting in September, depends on whether they put greater weight on the risks to inflation, or to the labor market.

Jerome Powell gave a slight hint of possible interest rate cuts in the future as he warned about a gloomier economic outlook, in part due to tariffs, CNN reported.

He noted that the inflationary effect of Trump’s tariffs could be short-lived, adding that the Fed’s policy stance may need adjustment after holding rates steady for eight consecutive months.