Trade War, Inflation... But No Rate Cuts In Sight

Airdrop Is Live CaryptosHeadlines Media Has Launched Its Native Token CHT. Airdrop Is Live For Everyone, Claim Instant 5000 CHT Tokens Worth Of $50 USDT. Join the Airdrop at the official website, CryptosHeadlinesToken.com 8h05 4 min read by Mikaia A. The Federal Reserve is delaying. It has kept its rates between 4.25% and 4.50% since December. But Donald Trump no longer wants to wait. He demands an immediate cut. For him, tariffs are enough to strengthen the economy. The Fed, however, wants to step back. Result: a tense tug of war between monetary independence and presidential will. The Fed meeting scheduled for this week promises to be electric. The markets, meanwhile, are holding their breath. In briefTrump wants the Fed to cut rates to offset the effects of his tariff surcharges.Powell refuses to act hastily, preferring to observe the evolution of real economic data.Tariff tensions fuel inflation, slow consumption, and weaken employment in the short term.Trump vs Powell: an open warDonald Trump, the president and bitcoin enthusiast, does not like waiting. Even less so when it comes from Jerome Powell, the head of the Fed. Since his return to the White House, he has been pounding his fist. He wants lower rates. “No inflation, the FED should cut its rate“, he wrote on Truth Social. Powell remains stoic. He repeats that the Fed acts based on data, not presidential moods. But the president keeps piling on attacks. Powell is always TOO SLOW AND TOO BAD. Behind the scenes, some even mention his impeachment. Yet, Powell is his own choice. To appoint, then want to fire: Trump remains true to his disruptive logic. The context is special. Inflation has slowed but stagnates at 2.4%. Unemployment is rising, markets are agitated. And Trump wants to revive at all costs. For him, the remedy is simple: cut rates, like in Europe.Tariffs that change the gameBut the Fed does not follow. For good reason. The tariffs imposed by Trump complicate things. 145% on Chinese products. At least 10% on all imports. Even cocoa is over-taxed. The goal? Reindustrialize America and fill the coffers. But the immediate result is a price increase. And tension on consumption. Loretta Mester, former Fed of Cleveland, warns: Tariffs will at least slow growth. The risk of stagflation is settling in. Sluggish growth. Imported inflation. Fragile jobs. Belinda Roman adds: If the Fed cuts rates now, markets will think it is panicking. And if markets panic, everything can deteriorate very quickly. The Fed hesitates, so it delays. Powell even quotes Ferris Bueller: “life moves pretty fast“. A wink, perhaps. Certainly a metaphor. We must observe, he says. Not rush decisions. But Trump, he charges ahead.Figures in hand, the duel continuesThe economic terrain is not reassuring. Unemployment rising to 4.2%. Record layoffs in April. Inflation steady at 2.4%, far from the 2022 peak, but still uncomfortable. Consumer confidence collapses. The expectations index is at 54.4, a threshold for imminent recession. Faced with these figures, Trump wants to act. Powell wants to wait. The disagreement becomes public.Here are the key figures of the moment:4.25% to 4.50%: current rates maintained since December;145%: tariff imposed on Chinese products;105,400: layoffs recorded in April, a post-Covid record;54.4: confidence index, lowest since 2011;2.4%: inflation in March, stable since September.For Trump, these signals demand an immediate response. For the Fed, they are reasons for caution, not action. This mismatch fuels tensions. And speculation grows. Rate cut or status quo? Both camps hold their positions.Donald Trump long dreamed of firing Jerome Powell. And he never misses an opportunity to remind everyone of this desire. Pressure is mounting. But will the Fed hold course in the face of this political offensive?Maximize your Cointribune experience with our “Read to Earn” program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.Mikaia A.La révolution blockchain et crypto est en marche ! Et le jour où les impacts se feront ressentir sur l’économie la plus vulnérable de ce Monde, contre toute espérance, je dirai que j’y étais pour quelque choseDISCLAIMERThe views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. 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