The former hawk of the Federal Reserve: It is too naive to expect a 100 basis point rate cut, and Powell will not clean up Trump's tariff mess

Odaily News The Trump administration has imposed epic tariffs on most global imports, and the Fed may be unable to resolve them. Bill Dudley, the former hawk of the Federal Reserve and former president of the New York Federal Reserve, warned that the market's expectation of a rate cut of more than 100 basis points this year is "too naive" and that it will only be realized if the US economy is in a full-scale recession. Inflation may reach 5% in the next six months, and economic growth may be halved to 1%. The Fed will be caught in a dilemma of "raising interest rates to accelerate recession, and lowering interest rates to worsen inflation." Don't expect the Fed to save the US economy dragged down by tariffs. The only question now is: how deep the damage will be. (Jinshi)