Strategist: The Federal Reserve's dual mandate could go in the opposite direction

Seema Shah, chief global strategist at Principal Asset Management, says the Fed is already in an almost desperate situation, where its dual mandate of full employment and stable prices could run counter to each other. However, the timing and magnitude of these changes will be determined by the implausibly high level of uncertainty in US government policy. Mr. Trump's tough stance on tariffs has further exacerbated the Fed's awkward position. In this case, the Fed has no choice but to sit on the sidelines. A rate cut is necessary, but the Fed increasingly seems to have to wait until the end of the third quarter for the window of opportunity to open.