Trump Criticizes Fed as Inflation and Tariff Plans Complicate Rate Decisions

President Trump renews his public criticism of Federal Reserve Chair Jerome Powell, blaming the central bank for inflation while proposing policies that could further challenge rate cuts.

• President Trump criticized the Federal Reserve for not reducing inflation, accusing it of focusing on issues like DEI and climate change instead of economic stability.
• The Federal Reserve, led by Jerome Powell, opted to keep interest rates steady after recent cuts, citing uncertainty around Trump's economic policies, including proposed tariffs.
• Trump's plans to impose broad tariffs on major trading partners, including China, Canada, and Mexico, raise concerns among economists about potential inflationary effects.
• Despite his public attacks on Powell, Trump has not directly communicated with the Fed Chair since taking office, emphasizing the central bank's independence from political influence.
• Market analysts suggest the Fed may adopt a cautious approach to rate changes, balancing strong economic growth with inflation risks tied to Trump's policy agenda.

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