Summary: President Trump’s announcement of aggressive tariffs on imports, with rates exceeding 50% for some countries, complicates the Federal Reserve’s efforts to control inflation and prevent an economic downturn. While investors anticipate rate cuts, the potential inflationary impact of the tariffs limits the Fed’s ability to bolster the economy. Economists warn that a full-blown trade war could disrupt supply chains, reignite inflation, and worsen the economic outlook, potentially leading to a recession.

Link: https://www.theedgesingapore.com/news/global-economy/tariffs-put-fed-tough-spot-raise-growth-and-price-fears