Latest tariff news hasn't changed outlook muchEconomy shows benign outlook with focus on inflation and wage growthFed must maintain independence to reach 2% inflation targetSolid economic growth and resilient consumer consumption attributed to healthy household spendingReduced employment growth reflects slow growth in labor supply and demandExpects pace of hiring to increase as uncertainty fades and firms adjust to Tariff environmentEffects from Tariffs expected to become more pronounced as costs pass to consumersCurrent market challenges include housing affordability and scarcity of childcareFed will use range of indicators to make decisions during data unavailabilityWe also heard from Richmond Fed President Barkin:Rate cuts so far helped support job market while waiting on inflation "last mile"Unemployment remains low by historical standards while inflation stays above targetSustained inflation miss since 2021 is taken seriously regardless of the "why"Expects economy to remain resilient in 2026 with stimulus from deregulation and tax reductionsMost firms are not currently doing layoffs at scaleRecent jump in productivity should help businesses bear higher input costsShrinking growth in labor supply is a top concern for the US economyStretched consumers are resisting attempts to pass along Tariff costsUnderlying dynamics support consumer spendingBoth Collins and Barkin maintain a cautious but generally optimistic outlook on the US economy, emphasizing that while a "soft landing" is in sight, the final push to 2% inflation remains a challenge. Collins highlights the transition to a new tariff environment and notes that hiring may pick up once firms adjust, though she warns of increased costs for consumers. Barkin views recent interest rate cuts as "insurance" for the labor market and suggests that strong productivity and upcoming fiscal stimulus from tax refunds will support growth in 2026. Both officials agree that the labor market remains resilient despite a recent lack of official data during the government shutdown.The market is pricing in a 54% chance of a rate cut in June, when Warsh takes over as Fed Chair. This article was written by Adam Button at investinglive.com.