Reduce interest rates in the US? Hurts, hurts

This is what you can most hurt. A sweet childhood that moved to another country. Early opportunity to invest in a company that develops graphic chips for games. Lower interest rates if not for tariffs.

On Tuesday, the chairman of the US Federal Reserve Jerome Powell confirmed that tariffs – and, in particular, their unexpectedly large “size” – are the main reason if the Central Bank did not reduce the rates this year because it is the last Cut them in December.

Imagine this. We could live in a world where the Fed rate is 4% to 4.25%. If the inflation remained obediently below 2% Fed target, the range could even be 3.75% to 4%, given that the Central Bank was preserved last year Projection of two rate declines in 2025.

The thought gives. But it may help think that if US President Donald Trump didn’t hit the fares on partners and penguinsHis other policies can similarly push inflation forecasts above.

Remember how all three major US indices has escaped and struck new records About the victory in Trump’s elections, because Wall -Ratit was waiting for taxes and more free corporate regulation. Without the weakened tariff effect, economic optimism can spread into riches and higher inflation.

It is better to reproduce the cards we dealt with than to break into imaginary futures.