As the Federal Reserve focuses achieving 2% inflation in setting monetary policy, so Trump’s policies, especially on tariffs, are likely to complicate the picture.

St. Louis Federal Reserve President Alberto Musalem on Thursday raised the twin risks of rising inflation expectations and a labor market that weakens alongside rising prices, in remarks that highlighted the potentially difficult choices facing the U.

The administration's piecemeal approach may be damaging, Fed officials say, as businesses and consumers adjust to an outlook that seems unpredictable.