A potential 'fateful showdown' between Trump and the Federal Reserve! Top economists issue a warning!
Former IMF chief economist Blanchard said that Trump's economic policies may lead to an overheated economy and high inflation, forcing the Fed to raise interest rates again. The three pillars of Trump's economic plan, tariffs, immigration policy, and tax cuts, may all cause inflation to rise. As a result, the Fed may raise interest rates again, strengthen the dollar, which is not what Trump hopes for.
USD: Dollar Holds Gains – ING
In October, Hong Kong's CPI rose by 1.4% year-on-year and increased by 2.2% month-on-month.
In October 2024, the overall consumer prices in Hong Kong rose by 1.4% compared to the same month last year, lower than the corresponding increase of 2.2% in September 2024.
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Federal Reserve williams: Inflation is decreasing, and interest rates will decline further.
The president of the New York Federal Reserve, John williams, recently stated in an interview that he believes inflation is cooling down and interest rates will further decline. williams mentioned that the usa economy is growing very well, the labor market is steadily cooling down, and the inflation rate is gradually decreasing from very high levels. By the end of next year, the federal funds rate will be lower than it is now. This will depend on the data and the progress we make. williams believes that a 2% interest rate best balances the Federal Reserve's goals of employment and price stability. He said, "My way of thinking is, what inflation rate can best balance maximum employment and price stability? Some people might say that price stability is 0."
