US President Donald Trump has imposed reciperook tariffs and auto tariffs on all countries around the world. Even though some countries of the world like China Australia, Italy have criticized this decision. But the kind of criticism by America has been done by a big person. No government head of the world has done that. This person is none other than Jerome Powell, chairman of American Central Bank. Jerome Powal has made such a statement on Trump’s tariff, which no one has the courage to give in America. Let us also tell you what has been said by the Fed Chairman.
Criticism of Trump’s decision
Jerome Powell, chairman of the US central bank Federal Reserve, said on Friday that there is a possibility of increasing inflation and softening in economic growth due to the imposing new fees of the Donald Trump administration. He said that the Federal Reserve will focus on keeping the increase in prices temporary. Powell said in his written comment that its effects on customs and economy and inflation are more than expected. He said that the taxes levied on imports are expected to increase the at least temporary increase in inflation, but the effects are also expected to be more permanent.
The head of the Federal Reserve said in his speech in Arlington, Virginia, that it is our responsibility… Ensuring that the one -time increase in the price level does not become a permanent inflation problem. Powell’s focus on inflation is an indication that the Federal Reserve will keep its major interest rate unchanged in the coming months at about 4.3 per cent.
American economy will be weak
Due to this, investors of the US stock market can be disappointed, who are now expecting five cuts in interest rates this year. The number of rate cuts has increased since President Donald Trump’s announcement of customs duty on Wednesday. Economists estimate that customs will weaken the economy, possibly threatening new recruitments, and raise prices. In case of this, the Federal Reserve can cut interest rates to strengthen the economy or also unchanged or increase rates to deal with inflation. However, from these comments of Powell, it seems that the Federal Reserve will focus on most of the inflation. Powell’s comment came two days after Trump imposed widespread customs on many countries. After this, there has been a huge decline in share prices in America and abroad.
US stock market declines
On the other hand, there is a big decline in the US stock market. Its head Karan China has also imposed a tax of 34 percent on the US import. At 10 pm, the Dav Jones is trading with a decline of 1,633.64 points, or more than 4 percent. On the other hand, Nasdaq Composite is trading with a decline of 833.59 points i.e. 5.04 percent. S&P 500 is seeing a big decline. If we look at the data, it is seeing 260.80 points i.e. 4.83 percent decline. A day ago, on Thursday, the market cap of S&P has seen a decline of more than 2 trillion dollars.