Former Fed "Hawk King": Expecting a 100 basis point rate cut is too naive, Powell won't clean up Trump's tariff mess

ChainCatcher news, according to Jinshi Data reports, the epic tariffs imposed by the Trump administration on most imported goods globally may be beyond the Federal Reserve's ability to mitigate. Former "hawk king" of the Federal Reserve and former New York Fed President Bill Dudley warned that the market's expectation of more than 100 basis points of rate cuts this year is "too naive," and can only materialize if the U.S. economy undergoes a full recession. Inflation may surge to 5% in the next six months, and economic growth could be halved to 1%. The Federal Reserve will find itself in a dilemma of "accelerating rate hikes leading to recession, and rate cuts worsening inflation." Don't expect the Federal Reserve to save the U.S. economy dragged down by tariffs; the only question now is: how deep will the damage be?