President Donald Trump wants price cuts, and he now wants them. Federal reserve, however, it seems unlikely to budge.
Investors are betting on the will of the federal reserve Upon interest rates Fixed at 4.25-4.5 % during the announcement of a policy on Wednesday, after three discounts in prices last year.
Federal Reserve Chairman Jerome Powell will face the press shortly after the policy meeting, and all eyes are on whether or not Trump’s public calls for price discounts. He adds to a long -term tension between the President and Powell, who threatened Trump to remove his position over and over again.
But Powell said firmly that he was planning to serve his term, as he emphasized that the president has no authority to shoot him. According to the US constitution, it is right.
Trump also calls for low oil prices, which may increase inflation. Investors closely monitor, but knowing Powell, it is possible that it will remain silent in the entire Trump issue.
The current Federal Reserve Status is supported on interest rates of economic data. Inflation has slowed down, and job growth remains strong, according to January 23 reports. The Powell team had already said in December that they would have stopped the price cuts at the present time.
The Independence of the Federal Reserve has always been a key to its credibility, so any imagined manipulation of the White House can have severe consequences for the entire global economy.
Trump’s economic policies make things more
While Trump presses the Federal Reserve, his commercial policies create its own chaos as well. The United States has used definitions as a major economic weapon eight years ago, starting from the first period of Trump. The customs tariff for China under Trump has been increased and later expanded by President Joe Biden.
China actually dominates five of ten commercial corridors that are currently faster. Meanwhile, America has been significantly marginalized in major employment discussions.
Meanwhile, the American economy is still strong. America’s share of global GDP increased to 25 %, and its financial markets dominate, representing approximately 70 % of global stock indicators.
World Trade talks stopped after the 2008 financial crisis, but the smaller bilateral and regional agreements continued to prosper. When Trump took office, he abandoned major trade negotiations with the European Union and Asia.
By the time when Trump’s second term began on January 20, commercial partners were rushing to end the agreements to protect themselves from more customs tariffs.
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