According to a report from Jinshi Data, the head of Fidelity's $2.3 trillion fixed income business stated that Trump's trade war is disrupting economic prospects, and the Federal Reserve faces challenges in curbing inflation and maximizing employment goals. Robin Foley said that the Federal Reserve's efforts to combat inflation are good, but employment still needs to be monitored. She pointed out that the central bank is in a dilemma.
Foley made these remarks as the Federal Reserve paused its rate cut cycle that began in 2024, as Trump's tariffs could exacerbate inflation and hurt the job market. Futures markets indicate that investors expect the Federal Reserve to resume rate cuts in September, later than predicted at the beginning of the year.