**Trump urges interest rate cuts, Federal Reserve: playing deaf, rates unchanged!**🧊
Despite Trump shouting on social media that 'inflation is gone, lower rates quickly!', Powell is completely ignoring him—interest rates? Holding steady!
📍Key point:
On May 7, the Federal Reserve is almost certain to maintain interest rates at 4.3%, unmoved.
The PCE inflation indicator is still above the target, but has started to cool down since March, and a rate cut could have been considered... but!
Last week, Trump threw a big surprise—tariffs across the board, which complicated the inflation outlook again!
👊 Powell and the Federal Reserve officials now just want to observe the situation first; no one dares to act rashly.
Economists frankly say: if it weren't for Trump pushing too hard, the Federal Reserve might have already started cutting rates!
🧠 The logic is quite simple:
No tariffs = can lower rates to stimulate the economy
With tariffs = inflation may come back, must hold high rates
💣 What will be the outcome?
Wall Street speculates: either a rate cut in July or a delay until September, unless tariffs lead to layoffs and a surge in unemployment, then the Federal Reserve might give in early!