BlockBeats News: On April 9th, Nick Timiraos, a journalist from The Wall Street Journal known as the "voice tube" of the Federal Reserve, published an article stating that Federal Reserve Chairman Jerome Powell is facing increasingly difficult tasks.
Economists, business owners, and investors generally believe that the uncertainty brought about by Trump's sudden large-scale tariff hikes, many of which will take effect on Wednesday, will push the economy closer to recession by weakening employment and consumption. This may require interest rate cuts to alleviate downward pressure on the economy.
At the same time, the magnitude of tariffs may lead to significant price increases for many imported goods, including raw materials used by domestic manufacturers. This may make Federal Reserve officials concerned about inflation and support maintaining current interest rates, despite the growing risks to the economy and labor market.
They are in a dilemma, "said former Federal Reserve Governor Lawrence Meyer.
The US Congress has entrusted the Federal Reserve with the responsibility of maintaining low and stable inflation and a healthy labor market. Since over forty years ago, no US president's policy has posed such a profound potential conflict between these two tasks of the Federal Reserve.
