Federal Reserve Holds Steady Amid Tariff Uncertainty, Pimco Strategist Tim Murray Predicts No Immediate Rate Cuts

Tim Murray, a strategist at Pimco, highlighted that the Federal Reserve is likely to maintain its current policy stance until tariff-related uncertainties subside or the labor market shows marked weakness. He emphasized that the Fed is unlikely to implement a short-term rate cut—commonly referred to as a “Fed Put”—to stabilize markets. Policymakers remain cautious, recognizing that reducing interest rates is not a guaranteed solution to economic ambiguity, especially given the inflationary pressures stemming from ongoing tariff disputes. Murray further noted that the Fed’s approach will continue to be data-driven, avoiding explicit forward guidance or politically motivated signals, underscoring a commitment to measured and prudent monetary policy amid evolving economic conditions.