Federal reserve warns !! Inflation in America may jump due to Trump’s customs policy
Federal reserve warns !! Inflation in America may jump due to Trump’s customs policy
Washington – Financial Times
The President of the Federal Reserve in St. Louis, Alberto Musalm,
New concerns about the future of the American economy,
Warning from The possibility of high inflation for an unlimited period The result of the commercial policies pursued by the president Donald TrumpEspecially the customs duties imposed on imports.
Speaking to a newspaper Financial TimesMoussalm explained that the fees imposed by the American administration may increase inflation for only two or two chapters, But there is a disturbing possibility of this increase for a longer period, without a clear time horizon.
Long inflation scenario: “50 to 50”
According to seasonal estimates, the The possibility of inflation remains high in the long run equivalent to 50%,
This reflects a state of Anxiety within the corridors of the federal reserve Regarding the ability of the current monetary policy to curb prices in light of commercial pressure.
The newspaper warned that this scenario could lead to Losing confidence of citizens and American companies Federal reserve ability to control inflation,
Especially if the government continues to impose wide customs definitions on the economic partner countries.
Trump imposes customs duties with 10% and begins negotiations
On the second of April, Trump signed an executive order imposed “Mutual” fees On the United States’ imports from other countries, by a rate Basic is 10%.
Various rates have been applied starting from April 9 on the basis American trade deficit With each country separately.
However, on April 9, Trump announced that More than 75 countries She did not take revenge measures, and asked for negotiation.
Accordingly, the US administration decided to continue the basic customs duties for 90 days, With the exception of ChinaAnd that continued commercial sanctions unchanged.
Fears of an economic confidence crisis
This new trend raised Wide concerns among the major monetary policy officials in America,
Amid indications that these measures may lead to Disorders in the market And a continuous rise in prices,
This threatens to undermine the foundations of economic stability that have been built during the past years.
The protectionist trends may lead to Change in the expectations of consumers and investors regarding inflation,
This complicates the federal reserve mission to maintain stable prices.
Expected negotiations with commercial partners
After these escalating steps, the American side began in Negotiations with a number of major commercial partners,
Among them is the European UnionIn an attempt to contain global reactions and avoid the outbreak of a comprehensive commercial war.
But observers see that the effect of these drawings has already begun to appear,
middle Destious economic expectations If there are no quick solutions.
Summary of the scene:
- 🔺 Federal reserve warns of a gossip that may be prolonged
- Trump customs policy raises the risks to financial stability
- 🌍 Urgent trade negotiations with the countries of the world to avoid escalation
- Federal Reserve faces a dual challenge: maintaining prices and curbing confidence loss
The post Federal reserve warns !! Inflation in America may jump due to Trump’s customs policy APPEROD First on 961 tobay Lebanon today.
