The current tariff situation could complicate decisions on interest rates

The Federal Reserve will meet next week, and there could be an announcement on interest rates.

They are a big topic heading into planting season, but frequent Market Day Report guest and Senior Market Analyst with Barchart, Darin Newsom, says tariffs could keep rates higher for longer.

“I mean, it just happens. We saw it before when we started getting into trade wars and putting tariffs on all of our trade partners. Inflation is sparked, and then that’s what happens, and then when you tell the Fed that they’re not allowed to raise interest rates to combat inflation, which is what happened last time, then inflation tends to get out of hand. So, you know, if the Fed is going to sit back here and watch all these trade problems go on and they’re going to see, okay, this is going to light the fire under inflation again, they’re not going to be in any hurry to lower rates, they’re not going to be forced to lower rates.”

The FOMC meeting begins next Tuesday, with a rate announcement happening on Wednesday. A summary of economic projects will also be released.

Related Stories
Fertilizer still consumes an unusually large share of crop value.
Kerry Hartwig from Sukup Manufacturing previews the grain management solutions they plan to share with producers at the upcoming Commodity Classic in San Antonio.
FBN co-founder Charles Baron previews the upcoming Farmer2Farmer event and how technology and AI are shaping the industry, offering growers practical insights and farmer-led strategies for modern agriculture.
Farm Bureau Economist Faith Parum discusses the latest Farm Bill proposal and the path ahead for Congress and U.S. agriculture.
Small Business Administration Deputy Administrator Bill Briggs joined us with an update on how the SBA is working to support rural communities and small businesses across the country.
President Donald Trump signed an executive order this week to accelerate domestic production of phosphorus and glyphosate, signaling that farm input availability is now treated as a national security risk.

LATEST STORIES BY THIS AUTHOR:

National Corn Growers Association Chief Economist Krista Swanson discusses corn supply pressures, market fundamentals, policy considerations, and producer outlook for the year ahead.
The proposal signals a renewed push to offset tariff-driven losses, stabilize nutrition programs, and broaden eligibility for farm aid, though its path forward will depend on congressional negotiations.
The application deadline is March 8, 2026. The 1890 National Scholars Program aims to encourage students at 1890 land-grant universities to pursue careers in food, agriculture, and natural resource sciences.
Midland County Junior Livestock Show in West Texas features swine competition with top exhibitors, including Grand Champion Brinley Wilson, ahead of Saturday’s premium sale.
Rep. Erin Houchin of Indiana discusses how the Affordable Homes Act will benefit rural communities, and her broader efforts to improve access to affordable housing.