Half of the voting committee members spoke out on the same day, signaling from Federal Reserve officials: No rush!

Federal Reserve officials collectively pour cold water, "holding steady" becomes mainstream.

On Friday local time, two days after the Federal Reserve announced its latest interest rate decision, more than half of the Federal Reserve policymakers publicly spoke, and none hinted at an imminent rate cut.

Cleveland Fed President Beth Hammack stated at a conference at Stanford University's Hoover Institution:

"I generally tend to take action; but in this case, inaction may be the best choice to balance the risks of further rising inflation and a slowing labor market."

Hammack emphasized that officials need more time to assess the impact of tariffs and other government policies. "When clarity is hard to come by, waiting for additional data will help inform the future path," she said. She added in an interview with Reuters that policymakers will not have much new economic data before the next meeting in June.

Several Fed officials emphasize inflation expectations

Several Federal Reserve officials, including Fed Governor Adriana Kugler, Lisa Cook, as well as Hammack and New York Fed President John Williams, emphasized the importance of controlling inflation expectations.

Williams particularly stressed this theme, stating that anchoring inflation expectations is "the cornerstone of modern central banking."

St. Louis Fed President Alberto Musalem stated, if the impact of tariffs on inflation is transitory, inflation expectations remain anchored, and economic activity slows significantly, lowering interest rates may be appropriate.

"Otherwise, I will focus on ensuring that tariff-related price adjustments do not transform into a sustained higher inflation policy path and ensure that inflation expectations remain well anchored."

Trade policy uncertainty may keep interest rates high for longer

Fed Governor Lisa Cook stated that she expects the trade policies and related uncertainties of the Trump administration to weigh on short-term productivity growth, which may prompt the Fed to keep policy rates elevated for a longer period.

Cook explained that the potential reduction in economic growth associated with declining productivity will bring greater inflationary pressures:

"All else being equal, lower productivity may lead me to support keeping interest rates elevated for a longer time."

Meanwhile, Cook stated that AI may boost U.S. productivity in the coming years, potentially offsetting the negative impacts of trade policies:

"I believe AI has the potential to be at least as transformative as other general-purpose technologies, such as the printing press, steam engine, and the internet. With the widespread application of AI, we may see a surge in potential output."