March 7, 2025: Economy Highlights. Federal Reserve Chair Jerome Powell stated that the central bank will not rush to cut interest rates amid uncertainties surrounding President Trump's trade policies, including recent tariffs on major trading partners. The U.S. economy faces a potential slowdown in consumer spending amid heightened business uncertainty,…
Traders are trying to digest upheaval in Washington, where Mr. Trump slapped 25% tariffs on Canada and Mexico only to exempt automakers and then a suite of goods under the U.S.- Mexico-Canada Agreement he struck in his first term. Investors fear a trickle-down effect in which tariffs raise prices, making it difficult for the Federal Reserve to cut interest rates.
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