China, Trump, the Federal Reserve: Who Will Compromise? The Covert Battle Between Trump and Powell
In the past two weeks, the world's attention has been drawn to Trump's global tariffs and the hard confrontation between China and the U.S., but there is another front that may have been overlooked, which is the confrontation between Trump and the Federal Reserve.
On April 9, at a time when U.S. stocks, bonds, and the dollar were all being hit hard, the Federal Reserve remained inactive, leaving the situation to worsen, forcing Trump to announce: tariffs will be suspended for 90 days.
On April 16, Federal Reserve Chairman Powell delivered an unprecedented hawkish speech: he is bearish on the U.S. economy.
1. The inflation shock caused by tariffs has exceeded the Federal Reserve's highest expectations, and the Fed lacks sufficient experience to handle such high tariffs.