A top Federal Reserve official said Friday that massive uncertainty created by President Donald Trump’s tariffs has caused some businesses to cut back on hiring and spending, threatening to slow the economy,

While Fed Chair Jerome Powell suggested it’s in a “good position” to act decisively if necessary, some economists worry this approach could make the central bank slow to respond to a downturn. Consumer sentiment has plummeted amid trade policy uncertainty,

Federal Reserve officials backed Chair Jerome Powell’s “wait-and-see” message on Friday, signaling they won’t rush to respond to the inflationary impact of President Donald Trump’s so-called “Liberation Day” tariffs,