Trumpâs own actions against Powell and the Fed are working against him | CNN Business
President Donald Trump just canât get what he wants from the Federal Reserve. Trump has long pounded the table for rate cuts and has wanted Fed Chair Jerome Powell out for years. But Trumpâs own actions over the past year have made those two outcomes far less likely. Now, thereâs a growing chance that the US central bank may not just delay a rate cut but may hike rates instead, particularly if the price spikes stemming from the US-Israeli war with Iran prove to be long lasting. Trumpâs efforts throughout his second term have only prompted central bankers to take pause and put any rate cuts on the back burner as they wait for things to play out â an approach that even Treasury Secretary Scott Bessent recently said he agrees with. The presidentâs attacks and threats on Fed policymakers themselves are also backfiring. For Fed officials to lower interest rates, they must be confident that inflation is slowing and is on track to their 2% goal. That had been the case right before Trumpâs second term began last January. Then Trump rolled out a confusing patchwork of tariffs last year that jacked up inflation on various goods (and he still isnât done with his tariff spree,
Source: For the complete article, please visit the original source link below.
