r/wallstreetbets • u/Force_Hammer • 1d ago

News Powell sees tariffs raising inflation and says Fed will wait before further rate moves

https://www.cnbc.com/2025/04/04/powell-sees-tariffs-raising-inflation-and-says-fed-will-wait-before-further-rate-moves.html
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u/Esqualatch1 1d ago

Rates cuts are 100% off teh table

526

u/erick1160 1d ago

Rate hikes on the table.

242

u/Waygzh 1d ago

In a market where there's guaranteed 10-60% inflation imminent, aren't rate hikes the only solution?

Just rug pull this shit, 5 point rate hike effective immediately. Rates are currently 5% below the minimum tariff implemented by Trump.

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u/Severan_Mal 22h ago

Jpow has 3 options:

  1. Hike rates because inflation -> affordability crisis & lagging investment leads to recession
  2. Cut rates to avoid lagging economy -> inflation reaches crisis point, leads to recession
  3. Keep rates stable -> leads to recession

We’re in a unique spot where we’ll probably have high inflation without the economy-supporting demand & consumption that usually come with it. Even if demand lowers in the US because of an American recession, prices probably won’t fall - the rest of the world will likely be selling at the same prices, and we’ll have less money & be tariffed to shit.

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u/SoberBobMonthly 15h ago

Yeah I think anyone arguing for these tarrifs seems to forget that each of us outside the US has had our own beefs with other countries and tarrifs before.

My favorite was when red wine became cheap as shit here in Australia for a while and we got to enjoy some decent plonk because of a trade spat with China that has since cleared up.

Like, yeah sure there will be some harms for us in other ways I'm sure, but this politics shit is impossible to predict or plan for and we all accept that its not going to make sense. And the result in the immediacy is that a lot of goods for the rest of us here are going to get much cheaper.

The main things we got from the US included machinery, vehicles, and electronic components. We might have to reduce our consumption of those things or get them elsewhere, and honestly, maybe we should have been doing that already. We need to boost our domestic manufacturing, and when the Greens here say they are happy with munitions factories on shore, you know things are fucked.