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/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/jasonridesabike 23h ago

Fed only acts on hard data and predictions on hard data. They don't respond to politics. It's by design, if they did otherwise it would jeopardize fed independence. JPow made that point very clearly in the speech and I believe to address these sorts of calls to action.

The fed isn't acting until blood is in the streets, one way or the other; and stagflation implies hike.

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u/AverageLatino 22h ago

As they should, the remaining trust in the american economy is due to the Fed independence and reliability, but I do wonder if JPowell will have to pull a Volcker if needed.

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u/jasonridesabike 22h ago

In my view it's inevitable that we'll see hikes if the tariffs aren't removed either mostly or entirely within a year. Could definitely be faster, but I see it as at most a year.

So the Q becomes: do the courts intervene (and if so does Trump obey), does GOP grow a spine, does Trump declare victory and stop? If no to all then hikes and potentially severe hikes IMO. I don't think any are reasonably predictable right now.