Federal Reserve sees tariffs raising inflation this year; keeps key rate unchanged

The Fed also now expects the economy to grow more slowly...

A majority of America's business community supported Trump during the campaign, and now Trump is acting exactly as he said he would, with some nasty consequences. The only takeaway is that most American businesspeople want a slower-growing more volatile economy. Crazy world we live in.

in the “beige” paper by the fed, agriculture is already facing problems and it will only get worse. u.s. farmers are losing foreign buyers, facing severe fertilizer problems if canadian tariffs go through, many projecting “zero profits or going out of business,” per the report.

cuts to uaid hurt farmers, the cancellation of programs that sources local agriculture for schools and food banks, signed contracts by the government for grants used to offset some of the costs of improved irrigation and other systems have been cancelled by trump, leaving farmers in the lurch. they’ve gotten loans for their portion and already installed systems.

25% of u.s. soybean crop is sold to china, but china just put tariffs to counter the trump tariffs, so brazil will step in to supply china.

worst of all. farmers don’t know what to plant now for harvest later because they don’t know what the hell trump will do in the future.

Tariffs=price increases=inflation. Trump's way.

Inflation never happened under Trump 1.0 with massive tariffs on China especially.

Remains to be seen, how many countries and how soon they lower their tariffs to avoid Trump's reciprocal/matching tariffs.

Already EU and India made major tariff reductions in response to DJT, meaning prices and inflationary pressure WILL DROP. Expect other countries do the same.

Tariffying

US has had several months of better-than expected inflation levels. Bond markets, DJT and Congressional leadership in Senate and House VERY Excited about DOGE providing massive budgetary relief to US Govt.

Given above = Why US interest have sharply dropped since Jan 20th, because less inflation is expected as Govt. borrowing set to fall, though in the very short term there could be noise due to tariff process playing out.

Time will tell but maybe best sign, massive investment busy re-shoring to US, huge Supply Side stimulus that reduces inflationary pressure, including Pro Energy production policies from Trump Admin now kicking in.

After listening to some of Jay Powell's commentary, he did not sound overly concerned about US economic situation and mentioned that long term inflation expectations continue to fall, which is very positive.

Jay characterized US economy as healthy and with very normal risks of a recession = Big Media Nothing Burger

HopeSpringsEternal: Your love for fascism surely has distorted your reality on the USA future. LOL

Seriously, if the FRB is so worried about inflation, why is it planning to cut rates twice this year?

Seems FRB likes progress of DOGE to reduce Federal Deficit, peace in Ukraine, deregulation and tax cuts to spur domestic investment, productivity & economic growth

If one listened to Jay Powell closely, he views trade tariffs much like Treasury Secretary Bessent; temporary situation that will soon self-correct, either by companies re-shoring to US and/or countries lowering their tariffs.

Can someone teach trump how economics work? He clearly has no clue.

US' weekly jobless claims are still increasing. It's an addition sign showing US economy falling into recession