Trump's tariffs are widely expected to drive up inflation and make it harder for the Fed to keep it under control, with Goldman Sachs and Wells Fargo expecting the Fed to cut interest rates twice this year, while Morgan Stanley joins Barclays and Macquarie in forecasting only one 25 basis point rate cut this year, citing uncertainty caused by President Trump's tariffs. The Federal Reserve also kept its benchmark overnight interest rate in a range of 4.25% to 4.50% at its January policy meeting, and Chairperson Jerome Powell said further reductions in borrowing costs now depend on the Fed making further progress in reducing stubbornly high inflation.