Fed decisionmakers are weighing the threat to the economy posed by the Trump administration’s tariff war, which has seen huge levies imposed on US trading partners, as well as the risk of an inflationary spike and the ongoing chaos in the Middle East.
But Trump, who said Wednesday morning he didn’t expect the Fed to cut, described Powell as a “political guy” who was “costing the country a fortune” by leaving rates where they are.
The effects of Trump’s global trade war, which began at the start of April on what the president described as “Liberation Day”, have yet to filter through the US economy.
Inflation ticked slightly higher in April compared with the previous month, the Bureau of Labor Statistics said last week, and increased by 2.4% over the same time last year.
Still, many observers believe it’s only a matter of time before the economic outlook worsens, with JPMorgan Chase chief executive officer Jamie Dimon warning last week that real economic numbers could “deteriorate” soon.