The Trump administration has confirmed that tariffs on imports from Mexico and Canada will take effect on March 4, and reciprocal tariffs are scheduled to take effect on April 2. Brian Martin, head of G3 economics at ANZ, said that if the impact of the tariffs remains unchanged for the rest of the calendar year, it could keep core U.S. PCE inflation at around 2.6% -2.9%, compared with a pre-tariff estimate of 2.4%. He added that the estimates did not take into account a possible second-round impact or offset weaker demand. Still, Martin said the Fed was likely to be patient and focus on a one-off price increase. ANZ insisted that the Fed would cut rates by another 75 basis points over the course of this cycle and resume cutting rates in the second half of 2025.