RE: No Rate Cuts While Tariffs Remain So High
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Tariffs are going to raise prices, are almost certainly going to have an inflationary effect. Trump's looking to Powell to bail him out. He wants that rate cut before the full impact of the tariffs hit. It's a race. Will the prices/inflation start rising, which will make a cut difficult if not impossible. Without a rate cut, and an increase in prices, there will be reduced consumption, a drag on the economy. A rate cut would be a life preserver, an artificial boost to offset that drag.
It's funny watching Trump fume at the one person in the world who doesn't seem to cower before him, the one person in the world who may hold the keys to the economic success of his second term.
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Yes if he continues with tariffs cutting interest rates will make inflation a bigger problem than it was before. Powell is doing an excellent job but his term is ending in less than a year .