Tr(D)ump the inflation progress.
Inflation concerns have taken a backseat, and now what haunts central bankers is the growth aspect of the economy. The Federal Reserve pivoted to an expansionary policy, considering the battle over inflation was under control. However, Trump imposing reciprocal tariffs on its trading partners, like 54% on China, the European Union at 20%, Vietnam at 46%, Taiwan at 32%, and many more in the list compelled the Federal Reserve to rethink the interest rate path considering the long-term uncertainty and volatility. The tariffs imposed have a basic idea of protectionism where “Make America Great Again” has become the famous slogan. This has undoubtedly questioned American exceptionalism in the past few days. The economic side of the tariffs is that these affect the supply side of the economy, making it a cost-push inflation. Considering the empirical and theoretical evidence, supply-side inflation is hard to control and is less receptive to the general monetary policy tool...