UBS Group strategist: Under tariff uncertainties, the Federal Reserve (FED) will remain on hold, and there is no possibility of interest rate cuts to stimulate the economy.

Tim Murray, a strategist at Puxin Group, said that the Fed will continue to hold its nerve until tariff-related uncertainty subsides or the labor market deteriorates significantly. Murray does not expect a “Fed put” anytime soon, i.e., a Fed rate cut to bail out the market. Fed policymakers know that lowering interest rates is not a cure for uncertainty. The Fed is also reluctant to cut interest rates, given the risk that tariffs will push inflation higher. Murray expects the Fed to stick to its data-dependent approach, refrain from providing forward guidance, and refrain from sending any “political messages.”