Trump problem of US Federal Reserve

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Last week, Jay Powell was especially tested. Donald Trump has restored the US federal reserve chairs as a “stupid person” to prevent interest rates to prevent their interest rates. On Wednesday, before the end of the beginning of the President’s media in May 2026, Powelle said that the new presidency could nominate the new chair. The White House was not “inevitable” and then no ads were not helped to remove from a sale in the dollar. The rumors around the work, the rumors launched in a weekly work starting with other members of the Fed reduces the cuts.

If the Trump wants to cut the ratio, the interventions and the chaotic policy diary does not help him. If the president’s president has a good way before the President, Powel has raised a concerns of a “a”Shadow fed chair“By distorting confusion confusion and transmission of money policy in the markets, this is as driving the loan speculation in the future policy and increased the work for higher prices in the margin.

Then there is immediate uncertainty around the President’s tariff policy. In mid-June, the FED held between 4.25-5 percent in his session. However, his politicians were divided into where they had to go. Recently, two ratios – should consider the verb to reduce the verb next month, including the leading candidate to succeed. After all, since the president’s April 2 tariff ads, US inflation readings have only a little conformity in inflation readings. High proportions are limited. Credit card violations are at the highest level for ten years and the annual salary increase in job shipments is the lowest in the partners in four years.

However, Powell’s caution is sensitive. On Friday, in May showed the annual growth of the year in the main personal consumer expenditure index – the fed’s prefdition of inflation increased by 2.7 percent. Indeed, it is very early to judge the effect of tariffs by inflation. First, US enterprises are still undergoing imported vehicles. Price pressures from existing tariffs may not appear in inflation numbers until the summer months. The Fed would be in a better position to understand that higher tasks pass through the supply chains.

Secondly, Trump’s full tariff package has not yet been hit. The president’s commercial partners will have no duty to take place when the deadline for the deadline for the “freedom day” tariffs. When these accumulations enter into force, they will further increase prices. The management also cancel the tariffs based on additional sector. Can also build other price pressures. Global oil prices are exposed to the fragile ceasefire between Israel and Iran. Trump’s tax-cut “Great beautiful bill” can add additional price pressure.

Tariffs, transitions to consumers and more than a surveillance of more prices, inflation has a risk of continuous improvement – there is only one-time jump on the price level. After all, Americans have more than 4 years, the target price increase is more than 4 years, Ilbird inflation expectations remain high. However, if the application of tariffs is delayed and uncertainty continues, the demand can fall faster, and thus raises the work for the cuts.

So far, holding rates feel like the safest choice given to all uncertainty. However, this means high risk of a policy mistake. The Central Bank’s degree and time of tariffs is more clear – and the broader agenda of the president – it would be better to determine the risk of cutting. The president will understand that the faces are one to greatly do the dilemma’s dilemma’s dilemma.