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Federal Reserve might cut rates because of Trump’s tariffs

Federal Reserve might cut rates because of Trump’s tariffs
The Federal Reserve is considering cutting interest rates if President Donald Trump's tariffs result in higher inflation. Minutes from a meeting held in January showed concerns about Trump's tariff threats on cars, semiconductors, and pharmaceuticals. The Fed warned that businesses may pass higher costs onto consumers, forcing the central bank to maintain high rates or potentially cut them if economic conditions worsen. Trump's proposed tariffs, if implemented, could disrupt supply chains and drive up prices across industries. Despite concerns, Wall Street earnings reports have remained strong, with many companies focusing on business tailwinds and Trump's deregulation efforts. Manufacturing is also seeing gains, with increased spending on new factories, artificial intelligence, and tax incentives expected to drive business investment growth. The Fed will closely monitor labor market conditions, inflation pressures, and international developments when considering adjustments to monetary policy.

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