Uncertainty on Tariffs by the President May have Caused a Delay of a Fed Rate decrease
It is almost laughable. TR__p’s wishy-washy back and forth on tariffs may have have caused the Fed Chair to delay a decrease. It sure sounds or reads like it.
Federal Reserve Chair Jerome Powell told lawmakers this last Tuesday, the recent economic data would have likely justified continuing to lower the Fed rates if not for concerns that higher tariffs might derail the central bank’s years long fight to defeat inflation.
AB: Oh well, looks like the current president has derailed an opportunity to lower Fed Rates (because of on and off or lower and higher tariffs). He kept changing his mind which creates doubt. And Jerome Powell decided to wait.
Powell said little about teeing up a rate cut next month. He did not explicitly rule one out. But his answers to lawmaker queries suggested it was more likely officials would wait until at least their September meeting to see if tariff-driven price increases are milder than expected before resuming rate cuts.
Not much of a surprise here and not sure why the author would use “unsually” to down grade Tr__p remarks. Powell’s testimony follows an interval of unusually harsh public criticism from Trump, who on Friday pleaded on social media for the Fed board to “override this Total and Complete Moron!”
Trump has urged Powell to cut rates now and said Powell could then raise them later if inflation resurfaces.
AB: Unfortunately and especially with Tr__p, it is better to error on the cautious side.