Economists and investors will search for evidence about how the federal reserve thinks about the goals of the Trump administration, especially plans to impose definitions on American imports.
“For me, the customs tariff is really the wild card of the macroeconomic policy this year,” said Claudia, the chief economist in New Konsarz, a former FBI official. “It seems to exceed everything else at this stage.”
The Federal Reserve faced global trade wars before – including during the first period of Donald Trump in his post. However, at this point, the price pressures nor the total demand were as strong as it is now. This time, the danger is that the effect on inflation is more clear – and more permanent.
A final response from the President of the Federal Reserve, Jay Powell, to the impact of definitions on interest rates as soon as possible.
Powell said after the Central Bank vote in December that there are “many factors, many” that determine how the fees affect the US imports on consumer prices, and that the focused bankers “will take our time” and do not push for conclusions.
Some economics expected executive orders on the first day of Trump's second state. But at this stage, it is still unclear how difficult the American President and the “tariff man”, who is self -described on commercial partners in the United States: commercial restrictions can be one time shock, prove slow burning, or increase in severity in the month – according to Treasury Secretary Scott Beesen's desire. Both tracks have effects on affecting consumer prices.
