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Why the Fed's inflation fight could be a victim of Trump's tariffs and tax cuts

The article from MSN discusses how former President Donald Trump's economic policies, specifically his tariffs and tax cuts, could complicate the Federal Reserve's efforts to manage inflation. Trump's tariffs on imports, particularly from China, have led to higher costs for businesses and consumers, contributing to inflation. Meanwhile, his tax cuts, which reduced corporate and individual tax rates, have increased consumer spending power, further fueling inflation. These policies have created a challenging environment for the Federal Reserve, which is tasked with controlling inflation through monetary policy. The article suggests that these fiscal measures have not only increased the price levels but also made the Fed's job of bringing inflation back to the target rate more difficult, potentially requiring more aggressive interest rate hikes or prolonged high rates, which could risk economic growth or even a recession.

Read the Full MSN Article at:
[ https://www.msn.com/en-us/politics/government/why-the-fed-s-inflation-fight-could-be-a-victim-of-trump-s-tariffs-and-tax-cuts/ar-AA1AdC5W ]