Trump duties: SOS by Fed to increase prices – new stock market fall

The warning that their economic growth will be affected and will increase for them as a result of young people in imports of goods imposed by the US president, the president of the Central Bank of America made. The president of the US Federal Bank () said that taxes recently announced by President Donald Trump were higher than the bank expected, exceeding the highest limit of its estimates.

His comments come as a crown of turmoil in the world, as they reacted to and escalating between them and.

Passive Americans for the economy

Jerome Powell cited investigations into households and businesses, which reported a “sudden fall” of their senses about the financial prospects, mainly because of the concern about duties. “

The US president has recently triggered the trade war, imposing a 10% tax on products imported into the US by the overwhelming majority of countries. It has further escalated duties with China, imposing a 145% tax on Chinese goods, though they exist. China retaliated with 125% duties to US products. The White House said Tuesday that when new duties are added to existing ones, contributions to some Chinese products could reach 245%.

“The level of increases in duties announced so far is significantly higher than expected,” Ja said. Powell. “The same is likely to apply to the economic impacts, which will include higher inflation and slower growth,” he added.

According to J. Powell, the impact on US government changes on trade, as well as on immigration, fiscal policy and regulation in the US economy, remains “extremely uncertain”.

Fall in US Stock Exchange

All three main US stock markets fell on Wednesday (16/4). Dow Jones fell 1.73%, while the S&P 500 and Nasdaq closed the day with a loss of 2.24% and 3.07% respectively. Possibly more alarming for D. Trump’s government was to increase the number of investors who left US state debt last week. The increase in the actual interest rate that the US government had to pay for its counterparts allegedly contributed to the US president’s decision to suspend some higher duties.

Constant basis, despite the uncertainty

Despite the uncertainty and market disasters, the “American economy is still steadily”, J. Powell. As he said, for the time being the Fed could maintain its reference rate “to wait for more clarity before considering any adjustment”. The Fed report rate has currently been set in a range of between 4.25% and 4.5%, where it has been in December after a series of interest rates reductions in late last year.

At the same time, the Fed must maintain the maximum possible employment as well as constant prices. In the event of increasing inflation and an increasing unemployment rate, J. Powell said: “We will look at how far the economy is from each target, and then look at the potentially different time horizons to set prices under control and reduce the unemployment rate. As the great Sicagos Feris Beuler once noted, “Life moves quite quickly”. “