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US PRESIDENT DONALD Trump’s tariffs could put the country’s Federal Reserve – its central banking system – in the difficult position of having to choose between tackling inflation and unemployment, its chair has said.
Trump’s stop-start tariffs have unnerved investors and trading partners unsure about the long-term strategy and what it might mean for international trade, as well as posing risks to the US’s domestic economy.
Chair of the US Federal Reserve Jerome Powell has said that although employment and inflation goals are mostly in balance at present, policymakers could find themselves in the “challenging scenario in which our dual-mandate goals are in tension”.
“Tariffs are highly likely to generate at least a temporary rise in inflation,” Powell told the Economic Club of Chicago, warning that the inflationary effects “could also be more persistent”.
“Avoiding that outcome will depend on the size of the effects, on how long it takes for them to pass through fully to prices, and, ultimately, on keeping longer-term inflation expectations well anchored,” he said.
Unlike some other country’s central banks, the US Fed has a dual mandate from Congress to ensure both stable prices and maximum sustainable employment over time.
It keeps those twin objectives in balance by lowering or raising interest rates, which act as to either accelerate or slow down demand in the world’s largest economy.
Most economists have warned that tariffs will push up prices — at least temporarily — while acting as a drag on growth.
The Trump administration has insisted that the levies are just one part of an overall economic agenda including tax cuts and deregulation designed to stimulate supply, boost growth, temper inflation, and return manufacturing jobs to the United States.
Tariffs would be “likely to move us away from our goals,” Powell said, referring to the Fed’s dual mandate.
Futures traders currently see a roughly 85% chance that the Fed will vote to pause again at the next interest rate decision in May, according to data from CME Group.
US financial markets fell following Powell’s remarks, with all three major Wall Street indices ending the day in the red as investors dumped tech stocks.
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Ah ha. Surprising that a Californian court would protect Apple against the foreign high tech foe! Steve RIP, Apple innovation RIP.
Samsung is also in California
In that case, Microsoft should sue Apple since they first proposed the idea in 2002 if anyone remembers.
Apple products are worth half their price at most. They may look nice and fancy but they don’t get the job done any better while emptying your wallet.
This is just greediness.
I spoke with someone yesterday who said he just bought an ipad. He then showed me gis new tab and it was a mickey mouse brand that I never heard of using android platform. The point is Apple are very good at marketing and people associate tabs with being Apple. If you take a step back, Samsung’s tab is far supperior. I was using Smart View on it the other day. Ie, I have a Samsung 8 series led. If my Samsung TAB is on the same network as the TV, I can watch TV on my tab. Comes in handy if I have to go out to the kitchen and dont miss out on the football! Apple cant do that!! Thats just one example thou
Typo error. I meant to say ‘superior’! Lets hope this issue in the US is sorted out soon!
Samsung, Apple, HTC et al are all bringing great products to the market for the benefit of the consumer. This patent/trademark war that is going on doesn’t benefit the consumer. All of the companies are doing it in different markets but Apple does seem to be the most prolific at it. Some of the patents seem to be pretty flimsy. Of course, yhey have a right to protect patents but is this now going to be at the expense of innovation?
That’ll hurt
no the ban is only for an out dated product and don’t affect the others. it’s only a PR victory.
This is just Apple trying to keep its position as top dog. By claiming court cases over crap like this and trying to injure the competition.
This is just an ongoing battle on the overall Patent Wars. Big tech companies like Apple, Samsung, etc. have little choice but to play it. If they don’t, their competitors will eat them whole, alive, and without ketchup. nnIt stinks, but that’s the system, and it’s not going to change any time soon.
have your say