The Powell-Trump Clash: Economic Challenges and Rate Cuts on the Horizon

Growth challenges are rising, but fears of stagflation are premature. The Fed may delay rate cuts until year-end, potentially making larger cuts. Consumer caution is dampening growth forecasts for 2025 and 2026, with spending leveling off due to tariff concerns. Job market weakness and household wealth volatility add to economic uncertainties. Tariff-induced inflation may lead to conflict between President Trump and the Fed. Fed likely to wait but may cut rates by 50bp in December to address economic challenges. The One Big Beautiful Bill Act may increase debt without boosting growth, posing risks for future easing measures.

Read more at Investing.com: The Powell-Trump Clash is Set to Escalate