FED MAY STRUGGLE TO 'LOOK THROUGH' TARIFF INFLATION: MORGAN STANLEY Fed Chair Jerome Powell said the central bank might not overreact to inflation from tariffs, viewing it as a one-time price spike rather than a trend. This could allow continued rate cuts even if inflation progress is slow. However, Morgan Stanley analysts note the Fed’s data-dependence might make it hard to justify easing if inflation stays high, requiring a more restrictive policy longer before cuts are possible.