Amid President Trump's new threats to trade partners, global markets are reacting to changes in tariff policies. The focus is also on the Federal Reserve's stance.
Trump's Trade Policy and Market Responses
Today, Trump made bold statements threatening his trade partners, creating concern in global markets. Tomorrow’s Fed minutes are expected to clarify the perception of tariffs and their economic impact. Following the heightened tariffs introduced in early April, markets began reacting to Trump's new proposals, including a global 10% tariff.
Inflation Issues and the Fed's Position
As tariffs approach 40%, questions arise about the effect of these changes on inflation. Although a direct 40% influence is unlikely, the increase in import prices will undoubtedly impact inflation. The Fed expresses concern over evolving trends and has opted not to cut interest rates this year.
Conclusion and Outlook for Future Actions
Trump continues his active trade policy, sending tariff letters to multiple countries. Responses from the EU and further news from the Fed are anticipated. The situation may escalate, leading to significant consequences for the global economy. Notably, Trump also published information claiming that tariffs do not affect inflation, contradicting the Fed's position.
Key aspects of Trump's current trade policy highlight tensions in international trade. In the coming days, especially after the release of Fed minutes, expect new statements and actions that may impact global markets.
