The US Congressional Budget Office predicted on Thursday that the Federal Reserve may cut interest rates a little more to “deal with downside risks in the labor market” and then stop it. Higher tariffs and increased demand driven by the Trump administration's tax cuts are expected to keep the inflation rate above the Federal Reserve's 2% target for the next few years.

The US Congressional Budget Office predicted on Thursday that the Federal Reserve may cut interest rates a little more to “deal with downside risks in the labor market” and then stop it. Higher tariffs and increased demand driven by the Trump administration's tax cuts are expected to keep the inflation rate above the Federal Reserve's 2% target for the next few years.