Federal Reserve's Goolsbee delivers a speech:
1. Short-term inflation expectations are rising, but long-term expectations have not increased, which is very important.
2. The Federal Reserve needs to focus on the development of the situation throughout the year; tariff policy is just one factor.
3. The impact of tariffs on the macroeconomy may be limited.
The three former presidents of the United States collectively criticize Trump.
Although not explicitly naming Trump, the messages from Obama, Biden, and Clinton could not be clearer. The words of these three former Democratic presidents indicate that the current moment is an unusual period for American democracy, where some norms are being ignored and extraordinary measures need to be taken.
Historians say that given the tradition of a smooth transition of power in the United States and the principle that there is only one president at a time, it is unusual for a president to publicly criticize their successor, let alone three former presidents doing so in such a short period of time, which may be unprecedented.
Biden stated in 2022 that Trump’s supporters “pose a threat to our own democracy” and noted that the Republican Party under his leadership has leaned towards “semi-fascism.”
Obama referred to Trump during the last presidential campaign as “a 78-year-old billionaire who never stops complaining about his problems and spouting crazy conspiracy theories.”
Clinton once said: “Trump—a consistent example—is still dividing, blaming others, and belittling others.”
Although these three former presidents have some personal grievances with Trump, such sharp and cutting remarks are not common for someone who has held the highest office in the country.
To be honest, since he took office, a series of events, whether it's the tariff fiasco, threats in speeches, or harsh words, have pushed the U.S. to the forefront of global scrutiny. He has not been bold enough to make enemies of everyone, nor strong enough to silence all critics. I hope subsequent actions will benefit everyone and truly lead to substantial changes in people's lives and the global economy, rather than continuing to destructively rely on these illusions.
The U.S. labor market is facing a new round of blows, with intensified inflationary pressures.
Trump's efforts to restrict immigration come at a time when the U.S. labor market faces precarious challenges, threatening to stifle a key growth engine, while tariffs may also weigh on economic activity.
Economists say these actions will reduce job creation and exacerbate inflation, amplifying the expected consequences of government trade policies (which are heightening recession concerns).
Olu Sonola, head of U.S. Economic Research, stated: “Population growth has clearly driven economic growth, but Trump is taking it away.” The slowdown in labor combined with significantly raised tariffs paints a picture of a weaker growth outlook and higher inflation scenario for the U.S. in 2025.