In an interview with The Wall Street Journal, the president of the Federal Reserve Bank (Fed) Chicago, Austan Goolsbee, warned that ongoing trade policies at the hands of Trump’s indefinite Trump’s tariff threats may hinder the FED ability to provide cuts of interest rates, which both the wider market and Donald Trump himself want to see.
Key attractions
The recent tariffs exposed by Trump have even exchanged inflation perspectives, which hinders the support of rates of rates that the president pressed.
Over the past few months, after Trump has stopped the steep double -sided tariffs, which he proposed in April, a fear of how tariffs can significantly raise prices. This made the federal reserve soon facilitate interest rates.
But the last round of tariffs can cause recent concerns about inflation, which can force the FED to maintain the waiting attitude and see until the central bank is more vivid.
