The Federal Reserve sees a single price reduction in 2025 because it will take 6 months to assess the economic impact of tariff graphics.

• The Federal Reserve Chairman at Atlanta Rafael Postic explained It will take some time for the Central Bank the economic effects of the new tariff policy in the White House. Because of the lengthy process, it was not only seen to reduce the interest rate this year.

The scope of the capabilities of what could happen to the American economy remains very wide so that the Federal Reserve cannot make any final decisions on its future, according to President Antleplant Virus Rafael Postc.

He added that with federal reserve sessions narrowly, there is likely to have a lower space than expected for interest rate discounts.

“I am much more inclined in one pieces this year,” Postek said through interview With CNBC on Monday.

The reduction in the same average of this year is a modification of Postec’s private expectations from February, when he said he was expecting two discounts in 2025. Federal reserve officials in general were also expecting price cuts for 2025. In March, it issued a summary of economic expectations known as “.Point plot“That showed that most members of the Federal Open Market Committee expect discounts. Postcock predictions are included in the” Dot plot “, but it is not currently a member of the committee that makes interest rate decisions.

The Federal Reserve will not have a field to reduce one this year except because it will need time to assess the full impact of President Trump’s tariff on the economy, according to Postec.

He said: “At the beginning of this year, when we were thinking about the definitions, we did not think about it at the level that was proposed here or by diversity across the sectors and across the countries.” “This requires a different kind of differentiation and integration. This is one of the reasons that make me decreased, we have to retreat and stop temporarily because the details will be important in terms of flow to a total image [of the economy]. For me, I expect it to take a little longer until this is resolved. “

The current tariff policy has changed dramatically since the announcement of “mutual” duties on April 2. It is also possible that it will change more given the ongoing commercial negotiations of the White House with more than ten countries. Postec estimates should wait from three to six months in order to resolve any uncertainty in politics. He said: “This will be an important specified about people’s willingness and lust for investment in the United States.”

Mustic added that the White House tariff policy caught many companies because it was expecting other economic policies from the Trump administration, such as canceling regulatory restrictions. He said: “What we saw during that entire period was a market that was reconciled with a different truth from what they expected.”

Fear among companies is that the only way to return to increased costs that depend on customs tariffs is to raise prices on consumers. Last week, Wall Mart – the world’s largest retail dealer, who is proud to maintain low prices – is on material, and is expected to have to raise them because his costs rise. If companies in all areas raise prices, this will lead to an increase in inflation.

Because of these dynamics, Bustic said it was more interested in inflation than unemployment today.

He said, “I am very worried about the aspect of inflation.” “Because we see that expectations are moving in a disturbing way. The expectations have increased in the short term a lot, and some long -term expectations began to immigrate.”

Short -term expectations increased in the wake of the declaration of direct tariffs, and the trend continues from the beginning of 2025, According to To data from Atlanta Federal Reserve. The Federal Reserve is particularly focused on long -term inflation expectations because they are better indications of whether companies and consumers expect a brief success of the economy or see a more permanent problem on the horizon. If this is the last, they are more likely to reduce their spending, which can start an economic contraction.

What worries people is that the definitions will eventually appear in the prices of stickers.

“We don’t really see the impact of definitions on pricing and how it is exposed to the economy by people,” Postek said. “But everyone feels as if it is coming and that this amount of the harbinger causes people’s anxiety.”

This story was originally shown on Fortune.com