American families are growing sharply less optimistic about the economic outlook, but the Federal Reserve may be loathe to respond aggressively to a weakening economy in light of increasing worries that the Trump administration's trade policy will boost already elevated inflation.

In an economy wracked by uncertainty, one thing seems virtually guaranteed: the Federal Reserve will leave its key interest rate unchanged when the central bank's policy committee meets Tuesday and Wednesday.

Although inflation receded last month, an escalating trade war threatens to cause prices to rise on a wide range of consumer goods going forward.

The Federal Reserve will keep interest rates steady through the first half of the year, before delivering two reductions beginning in September, according to economists surveyed by Bloomberg News.