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Higher tariffs recently implemented have begun to influence prices of various goods, though the full economic consequences remain unclear. The Fed remains cautious, acknowledging that the effects of these trade measures on inflation and overall economic health are still to be seen.
Political Criticism and Market Sentiment
President Trump has repeatedly criticized the Federal Reserve's policy, particularly targeting Chair Jerome Powell. During a recent rally, Trump called for the Fed to dramatically lower interest rates by three percentage points to combat what he perceives as economic stagnation and to counteract the effects of foreign capital inflows flooding into the US. He criticized the current high rates, blaming them for hindering consumer spending and investment.