"Federal Reserve's Megaphone": New Inflation Risks May Arise After the U.S. Election

ChainCatcher news, according to Jin Ten reports, "the Federal Reserve's mouthpiece" Nick Timiraos stated that the Federal Reserve's two-and-a-half-year battle against inflation seems to have succeeded, but the U.S. election may change this situation. Both candidates support policies that promote economic growth, which could prevent inflation from declining further. However, economists and even conservative advisors are concerned that Trump's supported views are particularly likely to ignite inflationary pressures. This includes his proposals for imposing tariffs on all imported goods, expelling workers, and relying on the Federal Reserve to lower interest rates.

Overall, these policies are moving in the direction of inflation. Trump's proposals could lead him into a new conflict with the Federal Reserve, whose task is to maintain low inflation. Any factors that reignite inflation could cause officials to slow down or even halt their interest rate cut plans.