Overview

• President Trump has publicly criticized Federal Reserve Chair Jerome Powell, urging immediate interest rate cuts and accusing him of political bias.
• Trump's recently announced tariffs, including a 10% baseline and higher rates for key trading partners like China and the EU, have caused sharp declines in global markets.
• Jerome Powell has warned that the tariffs are likely to increase inflation and slow economic growth, with effects potentially more persistent than initially expected.
• The Federal Reserve has maintained its current interest rate policy, prioritizing inflation control and waiting for more clarity on the economic impact of the tariffs.
• China and other trading partners have retaliated with tariffs of their own, further escalating trade tensions and complicating the Fed's dual mandate.