President Donald Trump
President Donald Trump acknowledged that his tariff policies might lead to some “transition challenges” but remained optimistic about their success. This follows the White House’s announcement that U.S. tariffs on China have increased to 145%.
Trump is also pushing for a major tax cut package and a debt ceiling hike. The proposed budget includes up to $5.3 trillion in tax reductions over ten years and raises the debt ceiling by $5 trillion in exchange for $4 billion in spending cuts.
Federal Reserve
Despite having a lower inflation reading, several Federal Reserve members from last night further emphasized the inflation problem while addressing that the risk of a higher unemployment rate and slower growth would come if the tariff overshoots the expected.
And that could lead to a delay in rate cuts this year, as per Federal Reserve Bank of Boston President Susan Collins.
