"Federal Reserve's Megaphone": Trump's Policies May Put the Federal Reserve in a Lose-Lose Situation

ChainCatcher news, according to Jin Shi reports, "Fed mouthpiece" Nick Timiraos stated that President Trump's haphazardly introduced tariff policies could put the Federal Reserve in a lose-lose situation: either respond to an economic recession or deal with a period of stagflation. In this week's meeting, how the Federal Reserve will navigate these trade-offs will be a tricky communication challenge. Powell and other officials are expected to maintain their wait-and-see stance on interest rate cuts and develop strategies on how to refine this position. This deliberate patience reflects officials' efforts to avoid prematurely abandoning their commitment to combating inflation. Richard Clarida, senior advisor at bond giant Pacific Investment Management Company, stated, "This will not be a cycle where the Fed preemptively cuts rates due to a forecast of economic slowdown. They actually need to see this in tangible data, especially in the labor market."