Consider the Federal Reserve essentially finished in making interest-rate reductions in 2025 if policymakers opt not to cut at their May 7 meeting, Bianco Research founder Jim Bianco says. Investors have been traversing through a stock-market correction (SP500)(NYSEARCA:VOO)(COMP:IND),

(Reuters) - San Francisco Federal Reserve Bank President Mary Daly still sees two interest-rate cuts this year as a "reasonable" projection, but with the labor market solid, the economy still growing and inflation edging down, policymakers can wait to reduce rates until they assess how businesses will adjust to tariff costs.

New York Federal Reserve President John Williams said on Monday that monetary policy is "well positioned" for what the economy might do this year, as he acknowledged there are risks that inflation could once again heat up.

Prices are now projected to rise faster than expected at least in part and perhaps largely due to Trump's plans to levy duties on imports from U.S. trading partners, Fed Chair Powell said.

The central bank’s outreach to companies has taken on new significance as the outlook for growth and inflation gets cloudier.

The Federal Reserve is expected to keep interest rates steady at its policy committee meeting ending March 19, but signal via Fed officials’ quarterly summary of economic projections that two rate cuts are likely later this year.

High interest rates have been battering consumers for years. And there's been a lot of pressure on the Federal Reserve to lower its benchmark interest rate, since that should result in lower consumer borrowing costs across the board.

Surge in macro uncertainty related to tariffs, including possibility of a global trade war, complicated Fed’s already difficult task of setting interest rates to accommodate unknown future.

Sentiment at the U.S. central bank has subtly shifted toward fewer cuts, even as White House calls for action.

The Commerce Department released the February personal consumption expenditures (PCE) index, which showed that inflation remains above the Federal Reserve's 2% goal.