The irony: President Trump fuming at Fed Chair Powell for not cutting rates, but Trump’s sweeping tariff wall is clearly more restrictive than Powell’s refusal to drop rates, which will likely happen anyway in September. With Trump’s tariffs likely to cause a one-time spike in inflation, the longer term risks remain global tariff retaliation which could bring on recession as trade shuts down similar to the Smoot-Hawley Tariff Act of 1930.
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