「Fed Megaphone」: Trump Policy Could Put the Fed in a Lose-Lose Situation

BlockBeats News, May 6th, in a message from the “Fed Whisperer,” Nick Timiraos stated that President Trump's haphazard tariff policy could put the Federal Reserve in a lose-lose situation: either facing an economic downturn or dealing with a period of stagflation. This week's meeting will see how the Fed navigates these trade-offs in challenging communication. Powell and other officials are expected to maintain their wait-and-see approach on rate cuts and craft a strategy on how to refine this stance. This deliberate patience reflects officials' determination to avoid prematurely giving up the fight against inflation. Richard Clarida, Senior Advisor at bond giant Pacific Investment Management Co., said, "This will not be a Fed that preemptively cuts rates because they foresee a slowing economy. They actually need to see it in the hard data, especially in the labor market." (FXStreet)