Markets have long speculated that Trump’s erratic tariff moves were a pressure tactic aimed at forcing the Fed to cut rates. Now that Europe has lowered its rates, Powell’s continued inaction has made Trump even angrier.
Powell rejected all hints at rate cuts on Wednesday. He emphasized that the Fed must ensure tariffs do not spark persistent inflation, stating that "more time is needed" to assess inflation trends. He also dismissed the idea of a Fed Put.
Powell further noted that the Fed may miss its 2024 inflation target, though it still expects to return to target in 2025.
Are you going fully to cash, waiting for clarity?
Or do you have a disciplined dip-buying strategy in place?
What would happen if Trump fire Powell?
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