Part 7/8:
On the economic front, the Federal Reserve’s monetary policy continues to draw scrutiny amid inflation concerns. There’s an overarching uncertainty amid discussions about potential rate cuts if inflation persists. This is compounded by the impact of tariffs introduced in the Trump administration, which could weigh on the economy. Economists are left pondering how these tariffs, alongside an unpredictable labor market influenced by policy changes, will shape economic growth moving forward.
Former Kansas City Fed President Thomas Hanig shed light on these complexities and emphasized the Fed’s tightrope walk between managing inflation and promoting growth, particularly in light of ballooning national debt pressures.