Trump’s Fed Chair Jerome Powell calls on attacks and interest rates, economists say

[ad_1]

President Donald TrumpBadgering in federal reserveTo reduce interest rates, however, although the Fed pressure is pressured, it will not be possible to reduce debt costs for consumers.

In fact, economists say that Trump’sOngoing attacksFed chairman Jerome Powell and herTariff policiesIt can save longer term interest rates higher than it will be different for consumers and enterprises. A less independent Fed can lead to higher debt costs over time, because investors are concerned about the inflation in the future. As a result, they require a higher product to the treasury securities.

There’s Trumprepeatedly called the dustTo cut a short-term interest rate managed by the Central Bank. Fed, during the economic crisis, usually reduces the ratio of the economic crisis during the economic crisis to encourage more debt and spending, increases the economy to cool and fight inflation.

But long-term rates for things likemortgageAuto loan and credit cards are mainly determined by market forces. And in recent weeks, Trump is afraid to lift inflation along with the control of sweeping tariffsThreats to Fed’s independenceHe has LED markets to push higher than long-term rates. It is not clear that the fed can completely cancel those trends.

“Fed, if the Fed’s rates are cut, if you see a measured decline in long-term interest rates,” Francesco Bianchi, Johns Hopkins University, “Johns Hopkins, Johns Hopkins.” In the Fed, it can be returned … Markets, Fedin not believed in the control inflation. “

Tell Powell for Powell on Wednesdays and Thursday, say journalists to “make a mistake” to reduce the short-term rate of Fed.

And last week, TrumpSuggested that he could shoot PowellA ball assistant said the white house could do that.

In response to the exchange markets, the product and dollar of the 10-year treasury bond fell,unusual combinationMost of the recommended investors have sold most American assets. Markets restored these losses after TrumpSaid on TuesdayFed said he was “intention” to shoot fire.

Again, the Fed’s independence is a fedus, which is a phplete from political pressure, which is critical to maintain inflation in the check in the vouchers. An independent fed can take unpopular steps as rapering rates to combat inflation.

“The fed’s threats do not calm the markets – undermine them,” he said. “And the result is often the opposite of what any management wants to see: higher rates, weakness and more market confusion.”

Trump rose from 4.15% to 4.3% when the Trump launched tariffs in early March, in Canada and Mexico. Income is a criterion for mortgage prices and other debts. Mortgage rates, in turn, increased from 6.6% to 6.8% during this period.

While the Trump said he was negotiating on tariffs with many countries, most economists expect to stay in place at least this year, including 10% of the duty in all imports.

The two federal reserve officials increased in twenty cases as soon as possible and unemployment increased in twenty cases as soon as possible, the rate was reduced to 10 years.

Again, the latest fall, longer interest rates are expected to reduce ratio, but then once roseFed Cut Cut in SeptemberThen the Central Bank, two days after the election – andIn December. Mortgage rates are higher than them when the fed ones are cut.

A number of factors, future growth and inflation expectations, as well as the supply and demand of government bonds, can affect long-term treasury. Bianchi worries the lack of stubborn high state budget for the trillions of the treasures – the lack of long-term rates.

The cut ratios of the fed, llonger-term debt costs said “in the opposite direction,” he said.

Trump must reduce the main degree of “almost inflation” in the post in a social media this week, and in the event of a basic rate of about 4.3% of the current level. Many economists expect the Central Bank to do this this year. But Powell’s Central Bank stressedWants to evaluate the effectFrom Trump’s policy before any action.

In recent months, inflation in recent months has fallen from the lowest level since the last September. The main inflation was 2.8%, except for the time and energy categories of time. Basic prices often give the place of inflation, a better signal.

The main issue for the Fed is that the economy is more different than Trump’s first period. Returned, inflation is actually under the target of the Fedin. At that time, it was “no brainer” to reduce vacations, Bianchi, if the decline was in danger, said inflation was not an issue.

But now tariffs will be almost at least temporarily reduced prices. The Biagi said Bianchi, who lifted the rod higher to cut the nutrition rate.

Again, when there are fresh signs, it is worse as an increasing rate of unemployment of the economy, nourishing, regardless of what economists said.

Monday Trump, often with the decision-making, often blamed “very late”, but the tariffs can move more slowly due to the threat of higher prices. Without an open proof of Downturn, Fed officials would be worried about being aware of political pressure if they were cut.

“If Powell occurs if it happens if it is cut by Trump, he knows that there is a loss of respiratory damage.”

Feeding now “I think it will raise more inflation in the growth that you think more inflation, because it is more inflation, before you pronounce more inflation,” said Poredelli.

Bianci can get more than one or two people to lower the long-term debt costs.

“It is necessary to provide a stable macroeconomic environment until truly long-term degrees and is not there,” he said.

This story was first displayed Fortune.com

[ad_2]

Source link