Powell confirms that the Fed would have cut by now were it not for tariffs
https://www.cnbc.com/2025/07/01/powell-confirms-that-the-fed-would-have-cut-by-now-were-it-not-for-tariffs.html
by cnbc_official
Powell confirms that the Fed would have cut by now were it not for tariffs
https://www.cnbc.com/2025/07/01/powell-confirms-that-the-fed-would-have-cut-by-now-were-it-not-for-tariffs.html
by cnbc_official
6 comments
Federal Reserve Chair Jerome Powell said Tuesday that the U.S. central bank would have easier monetary policy by now if not for President Donald Trump’s tariff plan.
When asked during a panel if the Fed would have lowered rates again by now had Trump not announced his controversial plan for levies on many foreign trading partners earlier this year, Powell said, “I think that’s right.”
Read more: [https://cnb.cx/4kgNVm0](https://cnb.cx/4kgNVm0)
Crazy he’s tight for tariffs, which aren’t a money supply issue, but loose and ‘transitory’ when a $2T ( close to being $6T ) stimulus goes through a 50-50 senate.
https://en.m.wikipedia.org/wiki/Build_Back_Better_Plan
I suspect Trump wakes up in the ~~morning~~ early afternoon, goes on Facebook market place, messages sellers, and after they agree to the deal, he gives a sob story as to why he should get the item for free.
What I don’t understand in his thinking is that tariffs and rates are both completely decorelated when it comes to inflation. Also cheap debts and a weaker dollar goes along with a reshoring strategy since it both favors exportators and infrastructure development.
Looks like a conflict of interest between the fed and the presidency to me. Typical politics.
Why cut rates, is the new normal zero rates? They should hold rates on this level, to have possibilities to act by economic downturns.
Parenting 101 don’t reward bad behavior
Comments are closed.