'Fast Money' traders talk the impact of tariffs on Fed policy

Federal Reserve Policy & Interest Rates - The market is debating whether the Federal Reserve should cut interest rates by 25 basis points [5][6] - The current Fed funds rate is floating around 425 to 450 basis points, approximately 43% [2] - Some believe the Fed is too focused on past data and risks being late in responding to economic changes [4][6][10] - Cutting rates by 75 basis points occurred last year [5] Inflation & Economic Factors - Housing costs, a significant component of CPI and PPI, are impacted by the Fed's balance sheet reduction of $35 billion [3] - Tariffs' full effect on inflation is still uncertain [2][6] - The speaker believes inflation is moderating and not out of control [5][6] - The Personal Consumption Expenditures (PCE) at 31% is not a major concern [9] Bond Market & Treasury Yields - The 2-year Treasury note yield is around 4% [2] - The 10-year and 2-year Treasury yields are at the same level as in autumn 2022 [13] - The bond market and the Federal Reserve may not be aligned in their expectations [12]