The Federal Reserve (FED) officials expect to cut interest rates within the year, and the impact of tariffs may become a key factor.

On June 25, Boston Federal Reserve President Collins stated that she expects the Federal Reserve to cut interest rates later this year. In a statement released by the bank, Collins said, “While I still expect that a gradual normalization of policy later this year is appropriate, my outlook may change significantly as events unfold, and the impacts of various government policy changes on the economy become more pronounced. This largely depends on whether the ‘price shocks’ from tariffs can dissipate quickly.”