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#EconomicPolicy

14 posts12 participants2 posts today

From now on the Federal Reserve faces a harder balancing act, as Donald Trump reenters the political fray with threats against Fed Chair Jerome Powell. On one side, economic momentum is weakening: business investment is retracting in the face of political chaos as the “animal spirits” that drive growth are deflating. On the other side, inflationary pressures are building from Trump tariffs. Now layered atop this economic instability is the political wildcard of Donald Trump’s chaos-monkey act, in the context of his very clear and very present desire to fire his own former choice for Fed Chair, Jerome Powell. Inflation bares its teeth, recession looms, and Trump wants the Fed Chair’s head on a pike. These are waves that might wash the sandcastle order of economic stability and prosperity away. —From Brad DeLong’s ‘Grasping Reality’ newsletter #Fed #FederalReserve #banking #finance #economy #economics #EconomicPolicy #TrumpTariffs #TradeWar #Stocks #StockMarket