Inflation has fallen sharply and as a result Fed officials have signaled they will cut rates by as much as a half-percentage point this year. Yet it has picked up a bit in the last two months and many of those policymakers, including Powell, still want to make sure that tariffs aren’t going to lift inflation much higher before they make a move.

The Federal Reserve holds its latest interest rate meeting this week, with policymakers expecting rates to be left unchanged despite President Donald Trump's calls for interest rate cuts.

President Trump has kept up his campaign for Federal Reserve Chair Jerome Powell to lower rates despite saying there was "no pressure."