The U.S. economy remains stable and can ease the impact of tariffs, Federal Reserve officials continue to signal patience.

On Tuesday, two Federal Reserve Bank presidents from the United States gave speeches on their current monetary policy stance, inflation pressures, and the impact of tariffs. Eric Rosengren, the president of the Boston Fed, stated at a National Association for Business Economics event in Washington on Tuesday that the overall economic situation in the United States is still strong, allowing the Fed to be "patient in considering whether to cut rates." "The current overall economy remains solid, allowing the Fed time to carefully assess various economic data," Rosengren pointed out in his prepared remarks. "Therefore, in my view, the current 'actively patient' monetary policy stance is still appropriate." Despite the Trump administration's recent push for several aggressive trade policies, especially high tariff measures, Rosengren noted that the healthy balance sheets of businesses and households could weaken the economic impact of these policies. "Financial data shows that businesses are coping with compressed profit margins and consumers continue to maintain spending capacity, which may to some extent mitigate the impact of tariffs. Therefore, the negative effects on the job market and economic growth may be relatively limited." She also revealed that the Boston Fed has developed a new method to quantify how rising import prices are transmitted to domestic consumer prices in the United States. She expects the Fed's preferred core inflation gauge to rise to around 3% by the end of the year, and then gradually decline. As of May, this indicator stood at 2.7%. Data released on Tuesday showed that the US core Consumer Price Index (CPI) rose lower than expected for the fifth consecutive month in June, but some goods have begun to show price pressures due to tariffs. The data further intensified the internal disagreements within the Fed about the inflation path and policy response. Meanwhile, Thomas Barkin, the president of the Richmond Fed, stated at an event in Baltimore that he believes the next Fed chair will make monetary policy decisions based on national interests, but he emphasized that the Federal Open Market Committee (FOMC) does not necessarily have to accept the chair's policy guidance. "I hope and believe that person will be dedicated to making the most appropriate decisions for the nation." Current Fed Chair Jerome Powell's term expires in May 2025, at which point President Trump has the right to nominate a new chair. Trump has publicly called for rate cuts several times, causing concerns about the central bank's independence. It is widely expected that Trump will nominate a candidate who is willing to cut rates. Potential candidates include former Fed governor Kevin Warsh, Treasury Secretary Steven Mnuchin, National Economic Council Director Kevin Hassett, and current Fed Governor Christopher Waller, all of whom have expressed support for rate cuts. Barkin also pointed out in an interview that while some companies are trying to pass on cost increases to consumers, there are signs of consumer "fatigue," with more people opting for "downgraded consumption." "You will see suppliers encouraged by the current inflation experience, realizing they are under cost pressure, and so they are more confident in raising prices," Barkin said. "But on the other hand, consumers are exhausted by inflation and are trying to control their spending." He described this game between supply and demand as "still playing out." Currently, there are different views within the Fed on how tariffs will transmit to end consumer prices, leading to varying judgments on the outlook for interest rates. While some officials are still concerned about the potential risks of inflation rebounding, including Rosengren and Barkin, among others, seem to advocate for maintaining the current interest rates unchanged to await clearer economic signals.