Federal Reserve officials want to see how exactly new trade policies impact the U.S. economy before adjusting interest rates.

How Does a Central Bank Affect Monetary Policy and Inflation? Most nations’ central banks target the inflation rate in their respective countries as their primary metric for monetary policy.

Powell noted the Trump Administration’s significant policy changes ... monetary policy stance based on economic developments. Powell stated this included maintaining “restraint” if inflation ...

AT A GLANCE: • Tight monetary policy aims to slow down an overheated economy by increasing interest rates. Conversely, loose monetary policy aims to stimulate an economy by lowering interest ...