The CPI is quite close to the 2% target that the FED desires, along with pressure from tariffs, bond interest rates, and Trump as well. What will the FED do?
The Consumer Price Index (CPI) for March decreased to 2.4% – lower than expectations and nearing the 2% target that the Federal Reserve (FED) has always pursued. Looking at the chart, the downward trend is clear and stable.
But what's noteworthy is: in the context of increasing pressure from other fronts – including the risk of a new trade war if Trump returns, bond interest rates remaining high, and import costs possibly rising due to tariffs – the FED cannot just sit still.
If the CPI is already behaving this "well", is it time for the FED to signal a loosening of policy, at least an interest rate cut sooner? Or will it continue to be "hawkish" for fear of the shadow of inflation returning?
All we know is that the market is anxious, and Trump is ready to come back.
