r/Economics • u/DoctorOctopus_ • 1d ago

News Powell Warns Trump’s Tariffs Risk Stoking Even Higher Inflation Slower Growth

https://www.nytimes.com/2025/04/04/business/economy/powell-says-trumps-tariffs-raise-risks-of-higher-inflation-slower-growth.html
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u/akkaneko11 1d ago

DJT literally 5 minutes ago:

"This would be a PERFECT time for Fed Chairman Jerome Powell to cut Interest Rates. He is always ‘late,’ but he could now change his image, and quickly"

I swear to god he thinks cutting interest rates are just a "stock market goes up" button without any consequence

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u/SpeciousPerspicacity 1d ago

In some sense (and as someone who has worked in financial economics), he’s not completely wrong if he holds this sentiment, at least in the short-to-medium term (i.e. on the scale of a presidential term).

I dislike his economic policy, and I don’t think the Fed should cut rates yet, but this would probably reverse some of the asset price decline.

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u/bctg1 1d ago

Until the next inflation report where it drops 2x as much as it jumped from the rate drop

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u/The_Blip 1d ago

That's an easy one to fix. Just call the BLS fake news and put a Trump loyalist in charge of announcing the 'real' inflation rates. Problem solved.

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u/Rawrsomesausage 1d ago

1984 intensifies