Trump, inflation and Tariffs
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Federal Reserve, Trump and Jerome Powell
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President Donald Trump swept into office in January with a promise to tackle what he called the "inflation crisis" that had kicked off under his predecessor.
Former Treasury Secretary Lawrence Summers warned that President Donald Trump’s preference for the Federal Reserve’s interest-rate setting would trigger a surge in expectations for inflation, driving up long-term borrowing costs.
Financial news has been breaking fast and furious, thanks to President Trump. Over the past week, he has: Escalated threats of sharply higher tariffs on major trading partners that don’t cut trade deals with him by the end of the month.
New data showing price increases last month could foreshadow even higher costs if the president imposes steep tariffs on Aug. 1.
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Elizabeth Warren introduces a price gouging bill to target big companies that use market shocks including a trade war to push through excessive price increases.
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AlterNet on MSN'It’s a pain': Trump-era inflation and disasters are spiking insurance in this swing stateIf President Donald Trump is relying on low inflation and costs to save him in the mid-terms, one southern swing state may prove a hard fight. The Atlanta Journal Constitution reports that insurance rates for Georgia homeowners grew by nearly 12 percent just in the past year,
President Donald Trump may ultimately get his wish for lower interest rates, but it isn’t likely to be the result of his intensifying criticism of Federal Reserve Chairman Jerome Powell.
Inflation is up, stocks are down, and more tariffs are on their way. Trump wants interest rates to come down but the direction of travel is making it less likely that the Fed will deliver the cuts he wants. It’s not clear whether Trump can extract himself from the policy cycle he has created.