Fed report: Tariffs have weighed on household and business sentiment ...Middle East

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The Monetary Policy Report is submitted semiannually to the Senate Committee on Banking, Housing, and Urban Affairs and to the House Committee on Financial Services. It was just released.

In a repeat from the FOMC, it said policy is “well-positioned", with inflation still “somewhat elevated” but growth wobbling.

Market liquidity has improved but remains highly sensitive to trade-policy headlines

Treasury trading stayed orderly in early April, yet depth fell back to early-2023 lows

New tariffs have dented household and business confidence

Financial stability judged “resilient” despite heightened uncertainty

Tariff impact not yet visible in hard data; still too early for a full read-through

Inflation remains “somewhat elevated,” while the labour market is still in solid shape

This article was written by Adam Button at www.forexlive.com.

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