Trump supports Federal Reserve's decision on interest rates. Analysts predict impact of new tariffs on inflation and GDP.
Donald Trump, the President of the United States, backed the Federal Reserve’s decision to maintain interest rates after three consecutive cuts by the end of 2024. This statement came just 10 days after Trump had said he would demand a rate cut. Analysts believe Trump’s new tariffs on imports from Mexico, Canada, and China will increase inflation and negate the possibility of interest rate cuts in 2025. Gregory Daco, a senior economist at EY, has predicted that these tariffs could lead to a 1.5% decrease in US GDP this year and a 0.7% increase in inflation in the first quarter.
