Federal Reserve meets this week amid economic uncertainty

WASHINGTON (NEXSTAR) -- Economic uncertainty could mean a pause in interest rate cuts. The Federal Reserve is meeting this week amid concerns about persistent inflation and the Trump administration's trade wars.

The Fed is scheduled to meet Tuesday and Wednesday. Bankrate Financial Analyst Greg McBride says all indications are they'll keep interest rates steady for now because of economic uncertainty.

"The Federal Reserve is going to stay firmly planted on the sidelines with regard to interest rates. They're not going to change interest rates at this point," McBride said "With more recent concerns about the economy and the stubbornness of inflation they're in a bit of a no man's land right now."

New economic policies from the Trump administration have created some turmoil, with major government spending cuts and changing tariff threats hurting confidence among businesses and consumers.

"We've seen consumer confidence plunge over the past couple of months. Some of the lowest levels we've seen really since the great financial crisis," McBride said.

The White House argues consumers should feel good about where the U.S. economy is headed under new leadership. White House Press Secretary Karoline Leavitt says recent data already shows improvement.

"Inflation is cooling, core inflation dropped for the first time in four months," Leavitt said. "The American people do have great reason to be optimistic about this economy."

Soon, we will learn what Fed officials are expecting for the future of the economy. On Wednesday they are set to release quarterly economic projections.

"What does the Fed project for economic growth and unemployment for the rest of the year," McBride explained.

He says if those projections are weaker than the numbers in their last report it will demonstrate real concerns about the road ahead.