Fed's Waller: Uncertainty over trade, other policies, shouldn't paralyze rate moves

The Federal Reserve (Fed), like a school principal managing the classroom economy, is watching how prices change. They want prices to rise slowly, not too fast or too slow. Recently, prices haven't been behaving perfectly.

A Fed leader, Governor Waller, thinks new taxes on imported goods (tariffs) might only slightly increase prices. He believes the Fed should focus on the overall picture, not get distracted by short-term price wobbles. The Fed's current plan is to keep interest rates stable for now.

• The Fed is trying to keep inflation (price increases) low.
• New taxes on imports might slightly raise prices.
• The Fed is waiting to see more data before changing its plans.