US Fed chair Jerome Powell signals rate pause over tariff-led economic uncertainty, ‘dot plot’ tweak likely ahead

US Federal Reserve Chair Jerome Powell signaled potential changes for the US Fed's closely watched "dot plot" interest-rate projections as part of a policy framework review underway at the US central bank and expected to wrap up by the end of summer. US Fed chair Powell said the Trump administration is making policy changes in several areas, including trade, taxes, government spending, immigration and regulation, and added that the “net effect” of those changes are what will matter for the US economy and the US Fed's interest rate policies. US Fed chair Powell on rate cuts, dot plot projections “While there have been recent developments in some of these areas, especially trade policy, uncertainty around the changes and their likely effects remains high,” said Fed's Powell. Supporters of the dot plot say it can make monetary policy more effective, noting that in the wake of the global financial crisis the US Fed's dot plot underscored U.S. central bankers' expectation they would be keeping rates at zero for much longer than markets might have otherwise expected.