American families are growing sharply less optimistic about the economic outlook, but the Federal Reserve may be loathe to respond aggressively to a weakening economy in light of increasing worries that the Trump administration's trade policy will boost already elevated inflation.

The Federal Reserve will likely need a lot more data, and a few more months, to clarify its growth and inflation forecasts and set the path for future rate moves as the impact of tariff and trade uncertainty continues to echo through the world's biggest economy and beyond.

This is owed to the mid-market focus of the ETF, and also demonstrates the bifurcation that we've seen in markets just now with the CPI data fresh off the press. While large cap ETFs are seeing some respite after days of correction, the IJJ and the U.S. mid-market are much more lukewarm, and declines continue for the most part.

The Federal Reserve will keep interest rates steady through the first half of the year, before delivering two reductions beginning in September, according to economists surveyed by Bloomberg News.

The Federal Reserve is still expected to cut interest rates this year — but not until the fall — as policymakers weigh the fallout from President Trump’s tariffs on trade partners, according to a survey released Friday.

The Federal Open Market Committee is expected to vote next Wednesday on whether to raise, lower or maintain interest rates at current levels amid heightened concern that a recession may be looming for the US economy.