Uncertainty of Federal Reserve's rate path after Trump unleashes tariff chaos

Same week as recession expectations rose

In the aftermath of US President Donald Trump’s bombshell ‘Liberation Day’, investors are split on which direction the Federal Reserve will now be steered.

At the most recent Federal Open Market Committee (FOMC) meeting, it voted to maintain interest rates at 4.25%-4.5%. The call came ahead of Trump's latest round of tariffs, which saw him roll out 10% global baseline levies on 2 April, and bigger, custom tariffs for the 'worst offenders'. The reciprocal tariffs imposed by President Trump on 'Independence Day' Credit: The White House Given the knowledge gap at the time of the FOMC meeting, experts expected it to hold firm and wait for a clearer macroeconomic picture to emerge. Fed dampens US growth prospects as Powell warns of tarif...