#TrumpVsPowell
Trump's Criticism of the Fed
Trump believes there's "essentially no inflation," criticizing the Fed's stance. However, the Fed raised rates in 2022-2023 to combat inflation, which dropped from 9.1% to 2.4%. The Fed even cut rates three times at the end of last year.
Uncertainty Over Trump's Tariffs
The Fed is keeping rates on hold due to uncertainty over Trump's proposed tariffs, including a 10% tax on all imports and a 145% levy on Chinese imports. Powell stated that tariffs would likely worsen inflation, and the Fed needs greater clarity before making moves. This uncertainty has led the Fed to wait, as Trump's trade policies could significantly impact the economy. With inflation near the 2% target, the Fed's decision hangs in the balance.
