Defend the economy or contain inflation

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Donald Trump’s tariffs shocked global markets and left the US federal reserve with a thorny problem

Market bias goes towards cuts. After the president, after the capital markets, the “Freedom Day” has announced the tariffs of “Freedom”, the traders are now betting the fed will decrease price Four or five times this year – from three to over three before Trump has emerged in a big way.

Fed President Jay Powell’s message was more hawk to the proportions. Tariffs would “durable” impact US inflationOn Friday, the Central Bank will become more difficult for the start of lightening.

This year is a disagreement that can partially determine the US economy. Wall Street banks are confronted by the problem for inflation this year, but pull predictions for growth – even if Trump does not get back from the brink in the tariffs.

This moves from Fed to lower prices. Trump is satisfied.

Powell said on Friday and S & P with S & P with S & P with S & P with S & P – the President of the truth, he said to be “perfect time” to slash debt costs. “He is always ‘too late’, but now he can change his image and soon,” he said. “Cut interest rates, stop playing Jerome and politics!”

Many economists think the problem is less clear. 2.5 percent, the inflation of individual consumer expenditures remains on 2 percent of the Fed, and the authorities are waiting for tariffs to accelerate rapidly.

“Fed is currently in a very difficult situation,” said Sarah house, the head economist at Wells Fargo. The Central Bank waited for 4.5 percent to 4.5 percent, 4.5 percent.

On Monday, Adriana Kugler must be “priority”, “priority”, and the front load of goods such as cars behind tariff ads can increase the growth of the forefront of goods as soon as possible.

On Monday, the Blackrock CEO of Blackrock, this is more concerned than inflation, he said he saw “zero chance” in the near future.

“If the proposed tariffs are really instead, I’m worried about inflation,” he said.

Fed officials, this economic boost is confident, and the Central Bank will remain in the Central Bank “Waiting and Visual regime, which has any impact of Trump’s price trade shock.

President of the Institute of International Economy Adam Posen, Fed’s depth tax discounts, said that the effects of tariffs or Trump’s financial plans such as depth tax discounts said the fed does not want the “bias”.

“The management of Powell and Fed, the leadership of Powell and Fed, this is a line that begins to walk. Fed “could wait until September” and the dispute was waiting until September, “he said.

Markets are a charged schedule, which is accelerated at the June meeting, which is 0.25 percent or 0.5 percent, which is 0.25 percent or 0.5 percent, which is accelerated in the quarter of the merchants last week.

Economists said they would prioritize the price pressure on the price pressure of the Central Bank – especially in the last two years to change one of the worst inflation increases in live memory.

“In this environment, inflation in this environment is to push, expose (fed) in advance, pre-acting and reducing insurance.”

Vincent Reinhart, a former Fed official, a former Fed official, who has a chief economist, said that rapid regulators could struggle to develop an exact strategy given to the “particularly uncertain” worldview.

The danger to wait for the “clear demonstration” of the tariff economy was to take a long time. “It was designed to wait for a long time to wait as long as possible.”

Much depends on how hard it is in Trump and its tariffs. On Monday, the world’s largest exporter, the world’s largest exporter of China offered to deal with transactions with countries like Japan.

If it flins with the hardest tariffs, it can be sufficient to eliminate any concerns on the cost of affecting the consumer demand and put all the attention to the health of the economy.

“The probability balance is that this is not to be taken longer for a longer term,” he said.