On July 12th, "Fed mouthpiece" Nick Timiraos published an article stating that the Fed is not expected to cut interest rates at its meeting later this month, but Powell has hinted that interest rate cuts may occur later this year if inflation performs well or the labor market weakens.
Trump wants to reduce the debt servicing costs of the federal deficit, while his tax cuts may expand the federal deficit. However, outside of extreme situations such as war, central banks in developed economies will resist this pressure. They believe that stabilizing inflation is crucial to maintaining people's confidence in their national currency. [BlockBeats]
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