Federal Reserve Messenger: Trump policies may put the Fed in a lose lose situation

律动BlockBeats
律动BlockBeats|May 06, 2025 01:24
According to BlockBeats, on May 6th, Nick Timiraos, the "voice of the Federal Reserve," stated that President Trump's arbitrary tariff policies could put the Fed in a lose lose situation: either dealing with an economic recession or dealing with a period of stagflation. At this week's meeting, how will the Federal Reserve engage in tricky communication around these trade-offs. Powell and other officials are expected to continue their wait-and-see stance on interest rate cuts and develop strategies on how to improve this stance. This deliberate patience reflects officials' determination to avoid giving up on fighting inflation too early. Richard Clarida, senior advisor at bond giant Pacific Investment Management, said, "This won't be a cycle where the Federal Reserve preemptively cuts interest rates just because it predicts an economic slowdown. They actually need to see this in tangible data, especially in the labor market
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