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New York Post
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Fed Chair Jerome Powell rebuffs Trump's push to cut rates, warns tariffs will likely push inflation higher

1. Powell rebuffs Trump's call to cut interest rates amid tariff concerns. 2. Tariffs likely to increase inflation and slow economic growth, says Powell. 3. Investors are pricing in multiple rate cuts due to tariff announcements. 4. Current inflation rate is at 2.8%, above Fed's target but moderating. 5. Powell emphasizes the need for caution before any monetary policy changes.

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FAQ

Why Bearish?

Trump's tariffs introduce economic uncertainty, raising inflation fears which can dampen market sentiment. Historically, tariffs have led to market downturns due to anticipated higher consumer prices and slowed growth.

How important is it?

The Fed's stance on inflation and interest rates is highly influential for S&P 500. Market volatility due to tariffs can lead to swift adjustments in pricing and investor sentiment.

Why Short Term?

Market reactions to news and policy announcements often manifest quickly. Similar instances, like trade tensions in 2018, caused immediate market drops as uncertainty loomed.

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