Federal Reserve's Mouthpiece: Tariffs Become a Key Factor in Whether and When the Fed Will Resume Rate Cuts

ChainCatcher news, according to Jinshi reports, "Fed mouthpiece" Nick Timiraos pointed out that Trump is considering a bolder tariff policy, which may influence the Fed's decision-making. A key question is whether rising prices will trigger public expectations for higher inflation, which will directly affect whether the Fed resumes rate cuts.

Looking back to 2019, Trump's trade war prompted the Fed to cut rates, but at that time, tariffs did not lead to significant inflation. However, this time the Fed may respond differently, as the U.S. has just experienced high inflation.

Experts predict that if tariffs are increased, the Fed is expected to be more inclined to oppose and may maintain higher interest rate levels.