The Fed could find itself in a policy Catch-22 if tariffs spike inflation and slow growth

1. Tariffs may increase prices and slow GDP growth. 2. Broader tariffs could cut GDP growth by 1.2% and raise inflation by 0.7%. 3. The Fed feels pressured but is cautious amid tariff uncertainties. 4. Markets expect the Fed to hold rates steady for now. 5. Historical examples show tariffs can have mixed inflationary effects.