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Among other measures, China imposed a 34% tariff on all imports to China from the U.S. and restricted export of rare earths to the U.S.

“When you look at the balance of the dual mandate right now, it is certainly much more challenging. I think the Fed is going to have to practice much more patience from here.”

Fed officials must decide this year whether to lower interest rates further to support the economy, or keep them elevated for longer to contain inflation. First they need to determine what proportion of inflation is tariff-related and whether that increase is temporary.

China will face a 34% rate, while the EU faces a 20% levy and Vietnam sees a 46% tariff.

“Despite policy uncertainty and downbeat consumers, the March top-line number was a good one for the economy and employers of all sizes, if not necessarily all sectors.”

February saw weaker-than-expected consumer spending and higher inflation.