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Us Federal Reserve: People who were expecting cheap debt in America have received a big shock. The American Central Bank Federal Reserve has not made any changes in its interest rates and retained at the current level. The Federal Reserve is waiting for the announcement of the proposed tariff plan of US President Donald Trump. The Federal Reserve will clarify its stance for the coming days only after the Trump administration’s tariff plan is revealed.
Following the Federal Open Market Committee’s decision to make no changes in the interest rates, the head of the Federal Reserve, Jerom Powell, said, “The US Federal Reserve has no clarity about the tariff proposal of Donald Trump, so it is not possible to adjust the policy. Powell said, we do not know what is going to happen about tariffs, immigration and fiscal poultry. He said, once this policy comes out, then after that we will review its impact on the economy.
President Trump talks about imposing duty on goods coming from China, Mexico, Canada. It is believed that in the next few days, it can be announced to increase duty on import. If this happens, the import from these countries will become expensive, the result will be that inflation in America may increase. In such a situation, the reduction in interest rates after the decrease in inflation was expected to be postponed at the moment. Therefore, the Federal Reserve is waiting for Donald Trump’s tariff plan.
President Trump has severely criticized Gyrome Powell after the Federal Reserve’s decision not to reduce the interest rates. However, the Central Bank has cited its autonomy. In the last four months of 2024 last year, the Federal Reserve has cut interest rates up to one per cent. In 2025 also the Fail Reserve indicated the cuts in interest rates. But the Central Bank is waiting for the proposed tariff plan of the Trump administration to be implemented. Only then will he take a decision.
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