The Fed, helmed by Chair Jerome Powell, is expected to hold rates steady this month despite pressure from President Donald Trump to make cuts.

President Trump has increasingly pointed to rate cuts by other central banks as he pressures Jerome H. Powell, the Fed chair, to reduce borrowing costs.

A short-lived bump in tariff-driven inflation could pass quickly enough to allow U.S. interest-rate cuts later this year, especially if tariffs themselves ease, Fed governor Christopher Waller said.