【Fidelity Bond Chief: Tariffs Put the Fed in a Dilemma】Golden Finance reports, the Financial Times of the UK stated that the head of Fidelity's $2.3 trillion fixed income business said that as Trump's trade war disrupts the economic outlook, the goal of Federal Reserve policymakers to curb inflation while maximizing employment is pulling them in "entirely different directions." Robin Foley stated that the Fed's "efforts to combat inflation are commendable, but employment remains to be seen." She added that the central bank is in a "predicament." Foley made these remarks as the Fed has paused its rate-cutting cycle that began in 2024 this year, as Trump's tariffs could exacerbate inflation and impact the job market. Foley pointed out that over the past year, market participants have experienced "very unstable" changes in their expectations for interest rates. Futures market trading indicates that investors expect the Fed to resume rate cuts in September, much later than earlier predictions at the beginning of the year. (Golden Ten)
