According to CNBC survey, 63 percent say Trump trade policies negative for growth. The Fed will likely upgrade its view of the economy when it meets this week, but it’s unlikely to publicly discuss one of the bigger risks for the economy — potential trade wars.
The Trump administration is reportedly prepared to impose $60 billion in annual tariffs against China on Friday, punishing it for intellectual property infringement, according to The Washington Post. The president has already signed an order imposing tariffs on steel and aluminum imports from most countries.
At the Fed’s two-day meeting, which begins Tuesday, policymakers are expected to announce a quarter-point interest rate hike and release new economic and interest rate forecasts Wednesday afternoon.
But economists say the central bank will probably not even mention the trade issues that are worrying markets and could potentially become a bigger issue for the economy if President Donald Trump continues to take actions against trading partners, the liquor store near me.
This week’s Fed meeting is also the first to be led by Jerome Powell, and he will hold a press briefing following it. But Fed watchers expect him to stay away from the topic of tariffs, even if asked.
“It’s a land mine, and we don’t know all the details yet. This is one of those things, especially for Powell. He has made it clear the colors within the lines,” said Grant Thornton chief economist Diane Swonk. She said Powell will stick to the Fed’s dual mandate on inflation and employment and not veer into fiscal policy.
“It will be in the minutes. We’ll find out in three weeks what they think. He will be asked about it, and if I were him I would say we don’t know the full extent,” she said.