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However, the spotlight on Powell isn't solely focused on the need for proactive measures. Critics, including former President Trump, have attributed the current inflationary situation to Powell's delay in responding to pressing economic realities. Trump has accused Powell of both creating the inflation crisis and failing to act promptly to curb it.
Amidst this controversy, analysts remain cautiously optimistic. While markets expect interest rates to decline over the coming quarters, several external factors remain at play. LaVorgna noted that falling energy prices will significantly benefit U.S. households, further cushioning economic activity as households experience improved cash flows.