In an interview with the Wall Street Journal, the president of the Bank of the Federal Reserve (Fed) of Chicago, Austan Goolsbee, warned that the ongoing commercial policy at the hands of Trump’s constant tariff threats could hinder the fed capacity of the Fed to implement interest -rates cuts that both the market in general and Donald Trump himself want to see.
Key points
The new tariffs revealed by Trump have further complicated inflation perspectives, making my support for the feat cuts that the president have requested.
In recent months, after Trump pausara the high bilateral tariffs he proposed in April, anxiety on how tariffs could increase prices were calmly calm down. That had put the Federal Reserve on the way to reduce interest rates soon.
But the last round of tariffs could generate new concerns about inflation, which could force Fed to maintain their position to wait and see until the Central Bank obtains more clarity.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
