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Economists and investors will take care for signs of how federal reserve about the purpose of Trump administration, especially the plans to inflict the tariffs of us.
“To me, tariffs tariffs are the wild card for macroeconomic policy this year,” says Claudia Sahm, President Economist in the new century counselor and a former fed official. “It feels better than more than all of this point.”
Fed faced global trading war before – including Donald Trump’s first term. However, at that point there are no price pressures or explore demanding as fast as it is today. At this time, the risk is that inflation effect is more pronounced – and further endurance.
A definite response from Jay Powell’s Fed Chair at the effect of tariffs in interest rates as soon as possible today.
Powell said after December voting in Central Bank with “many, many reasons” how US imports affects consumer researchers, and central bankers “use our time” and not rush to conclusions.
Some economic guardians expect executive orders on the day in one of Trump’s second term. But at this episode is not clear how difficult the US president is and self-defined “Tariff Man” in a wasting fire, or prove slowly to the moon – as desired by Treasury Secretary Scott Bseltsents. Both paths have implications for knock-on effects of consumer prices.