Tariffs could cause a recession. But they will also push up prices. As markets plummeted late last week, Powell's message was clear: Don't expect the Fed to cut without clear evidence that the labor market is cracking.
@colbylsmith.bsky.social reads the tea leaves:
www.nytimes.com/2025/04/07/b...
Trump’s Trade War Raises Bar for Fed Rate Cuts
Tariffs set to take effect this week risk stoking even higher inflation and slower growth than expected, complicating the central bank’s decisions on monetary policy.
