Inflation up and slowdown: According to the head of the Fed (American bank central) President Donald Trump's duties “turned out to be higher than expected”. Jerome Powell said the new customs tariffs would cause Increase in inflation and slower economic growth. He also suggested that the federal reserve will not change interest rates until he “obtains a brighter picture of the final effects of” duties – quotes the President of the Fed Reuters.
An increase in unemployment? In a speech given in front of business journalists in Arlington, Virginia Powell said that Fed was in the face of “very uncertain prospects” because of new “mutual duties” announced by President Donald Trump on Wednesday. – we are dealing with a very uncertain perspective, with increased risk of both higher unemployment and higher inflation – added Powell.
Trump “accosted” Powell: – It is our duty to maintain long -term inflation expectations at a stable level – emphasized the head of the Fed. CNBC reminds that Powell's speeches took place shortly after he was “accosted” on social media by Donald Trump. The American president called Powell to “He stopped playing politics “and lowered interest ratesbecause inflation has dropped.
“The effects can be more durable”: – Though duties with high probability will cause at least a temporary increase in inflationit is also possible that the effects can be more durable – he said, among others Powell during his speech. The president of the American federal reserve added that the further consequences of Trump's customs tariffs will depend on the scale of answers from trading partners USA and the length of duties. We would like to remind you that the Federal Open Market Operation Committee (FOMC) is gathering, among others on interest rates on May 7.
Trump's duties, China's answer: Meanwhile, Friday is another day when world stock indexes quilts down in response to the new “mutual duties” announced by Trump. Customs rates for importing goods to the USA are from 10 percent. For most countries up to up to 54 percent towards China. In turn, American duties on goods from the European Union will be 20 percent. On Friday for tariffs from the site USA Beijing has already answered. The Ministry of Trade announced that will apply 34 % duties on all American products.
See also: What is happening in oil markets? More in the text “Crash of oil prices. It has not been for years. We know how much drivers will pay at gas stations”.