Trump Is Pushing For A Rate Cut: Is Powell Really Too Late?

Summary

• I support the Fed's cautious stance on rate cuts, given lingering uncertainty around tariffs and their potential inflationary impact.
• The New York Fed survey shows many companies are passing tariff costs to consumers, risking an inflationary spiral as more follow suit.
• Tariffs have not yet boosted US investment or employment, and nearly half of surveyed firms report negative impacts on net income.
• It's too early to cut rates; the Fed must preserve credibility and avoid erratic moves until the full effects of tariffs are clear by late summer.

Andrii Yalanskyi

Intro

President Trump has tried in every way to say that he would like a rate cut, but Powell (or more generally the FOMC) still seems reluctant at the moment. Actually, the more time passes, the less willing he seems to agree with

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