{"id":115635,"date":"2025-06-19T02:47:00","date_gmt":"2025-06-18T22:47:00","guid":{"rendered":"https:\/\/noortrends.ae\/en\/?p=115635"},"modified":"2025-06-19T04:51:44","modified_gmt":"2025-06-19T00:51:44","slug":"trumps-stupid-jab-at-powell-tariffs-clash-with-feds-patient-strategy","status":"publish","type":"post","link":"https:\/\/noortrends.ae\/en\/trumps-stupid-jab-at-powell-tariffs-clash-with-feds-patient-strategy\/06\/19\/market-updates\/","title":{"rendered":"Trump\u2019s \u201cStupid\u201d Jab at Powell: Tariffs Clash with Fed\u2019s Patient Strategy"},"content":{"rendered":"\n<p>The U.S. economy is a powder keg, with President Donald Trump\u2019s 10% \u201cLiberation Day\u201d tariffs, launched in April 2025, igniting global trade tensions and inflation fears. Meanwhile, Federal Reserve Chair Jerome Powell, whom Trump publicly called \u201cstupid\u201d for not slashing rates, is holding firm, keeping interest rates at 4.25%\u20134.50% for the fourth consecutive meeting. The Fed\u2019s data-driven restraint stands in sharp contrast to Trump\u2019s impulsive tariff policy and his vocal pressure for rate cuts. As geopolitical risks, like the Israel-Iran conflict, loom large, this high-stakes economic standoff tests the resilience of markets and households. Here\u2019s why Powell\u2019s steady hand trumps Trump\u2019s brash approach.<br><br>Tariffs: A Costly Blunder<br><br>Trump\u2019s blanket tariffs, meant to boost American wealth, are backfiring. By hitting nearly all trading partners, they\u2019ve spiked consumer prices, disrupted supply chains, and provoked retaliation threats from the European Union and Britain. The Fed\u2019s 2025 forecasts reflect the damage: inflation rising to 3.0%, growth slowing to 1.4%, and unemployment climbing to 4.5%. New Zealand businesses warn these tariffs hit harder than the Covid-19 pandemic. Powell\u2019s refusal to cut rates hastily avoids fueling this inflationary spiral, a prudent move given the tariffs\u2019 ripple effects.<br><br>Trump\u2019s Insult and Rate-Cut Crusade<br><br>On Wednesday, Trump lashed out, calling Powell \u201c<strong>stupid<\/strong>\u201d and unfit for his role while demanding lower rates to ease national debt burdens. Speaking at the White House, he criticized the Federal Reserve\u2019s decision to keep interest rates unchanged at 4.25\u20134.50 percent for the fourth consecutive meeting, arguing that the absence of significant inflation and the country\u2019s economic success warranted immediate cuts. Trump\u2019s remarks came as the Fed, led by Jerome Powell, forecasted higher inflation at 3.0 percent, cooler economic growth at 1.4 percent, and an unemployment rate of 4.5 percent for 2025, citing the impact of Trump\u2019s sweeping 10 percent tariffs on nearly all trading partners. <\/p>\n\n\n\n<p>Powell emphasized a cautious approach, stating the Fed was \u201cwell-positioned to wait\u201d for clearer data on tariffs\u2019 effects on inflation, spending, and hiring, with more insight expected over the summer. This divergence in views, coupled with Trump\u2019s threat of new tariffs and his suggestion of appointing himself to the Fed, underscores rising tensions between the administration and the independent central bank, as markets brace for potential global trade disruptions.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The U.S. economy is a powder keg, with President Donald Trump\u2019s 10% \u201cLiberation Day\u201d tariffs, launched in April 2025, igniting global trade tensions and inflation fears. Meanwhile, Federal Reserve Chair Jerome Powell, whom Trump publicly called \u201cstupid\u201d for not slashing rates, is holding firm, keeping interest rates at 4.25%\u20134.50% for the fourth consecutive meeting. The &hellip;<\/p>\n","protected":false},"author":13,"featured_media":107977,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[6827,49,37,39,36],"tags":[],"class_list":["post-115635","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-daily-economic-reports","category-economic-reports","category-forex-markets","category-global-stock-markets","category-market-updates"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/115635","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=115635"}],"version-history":[{"count":3,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/115635\/revisions"}],"predecessor-version":[{"id":115645,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/115635\/revisions\/115645"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/107977"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=115635"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=115635"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=115635"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}