Trump's Tariff Policies Heighten Economic Uncertainty as Fed Holds Rates Steady
The Federal Reserve warns of potential stagflation and delayed investments while President Trump pressures for rate cuts ahead of April tariff deadline.
- The Federal Reserve has kept interest rates at 4.25%-4.5%, citing uncertainty tied to President Trump's escalating tariffs and their economic impact.
- Fed officials lowered U.S. growth projections for 2025 to 1.7%, highlighting risks of slower growth and persistent inflation driven by trade policies.
- Businesses report delaying investments and capital projects due to unclear fiscal and trade policies, according to Chicago Fed President Austan Goolsbee.
- President Trump is pushing the Federal Reserve to lower interest rates, arguing that reduced prices for goods like eggs and gasoline justify rate cuts.
- The April 2 deadline for new tariffs looms, with analysts warning these measures could significantly increase inflation and further disrupt economic stability.
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