Fed policymakers are likely to continue holding rates steady despite a cooler reading on inflation for the month of March, due to the risk that prices could pick back up in the coming months as more tariffs are absorbed.

Interest rate cuts remain possible at some point, but uncertainty related to huge changes in U.S. trade policy make it hard to know how the economy will fare for now and how the U.S. central bank's rate policy should be adjusted,

President Donald Trump is ratcheting up pressure on the Federal Reserve to cut interest rates, accusing Fed Chair Jerome H. Powell of “playing politics” and of acting too slowly to respond to changes in the economy.