The effects of the aggressive customs policy of US President Donald Trump are “extremely uncertain,” said the director of the American Federal Reserve Fed, Christopher Waller. However, it can have serious consequences for the economy of the United States.
Trump’s customs policy is “one of the biggest shocks for the American economy for many decades,” said FED director Waller. The effects of customs policy are still absolutely uncertain, the central banker said.
That is why the outlook on further economic development is “extremely uncertain”. Against this background, monetary policy must remain flexible.
Inflation increases “only temporarily” due to rates
Waller left the possibility of an American important interest because of the recent events. However, the central banker also made it clear that he was probably only temporarily estimated a possible increase in inflation.
“Despite the fact that the last inflation of 2021 lasted longer than I and other political decision makers originally expected, I assume that higher inflation will only be temporary due to rates,” said the central bank director.
Trump causes uncertainty
Trump continues to ensure great uncertainty with numerous customs announcements, returns and a general unpredictable trade policy. This sometimes resulted in violent market turbulence in the financial markets. The next interest rate decision of the American Federal Reserve is in the program in May, whereby a further unchanged interest is expected.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
