(CNBC) When the Federal Open Market Committee met in March, U.S. President Donald Trump had yet to unleash his so-called "reciprocal" tariffs on the world. But Fed policymakers were already bracing for the impact of trade barriers. At the conclusion of that meeting, the FOMC lowered its economic forecast for the U.S. and hiked its inflation projection. Fed Chair Jerome Powell said "a good part" of the downbeat forecast "is coming from tariffs." On April 2, Trump stunned even the most pessimistic of market watchers when he held aloft the board with a list of higher-than-expected tariffs on many countries. Even though Trump has since paused them, the Fed seems to be operating on the (very uncertain) assumption Trump could reinstate those eye-watering levies at any moment. At the FOMC's most recent meeting that concluded Wednesday, Powell no longer pulled punches in his post-meeting press conference, as he did in March. This time, he placed the responsibility squarely on Trump's tariffs, saying they "are likely" to cause hotter inflation, slower economic growth and higher unemployment — recipes for a stagflationary scenario. So far, that's the clearest warning from a U.S. authority about the damage tariffs could wreak. However, considering that Trump has not only expressed frustrations with Powell, but also said on Wednesday he wouldn't consider lowering the 145% tariff on China to start trade negotiations with the country, it's unlikely that Trump would heed the Fed's caution. — Yeo Boon Ping
US-UK trade pact will leave the 10% US tariff in place - CNN. Trump’s trade announcement with the UK will be limited in scope, heavy on future commitments & leave the existing 10% universal tariffs in place, a US & UK official tell - CNN Reporter on X UK Officials see the US deal as initially focused on cars and steel - FT. Greatest deal evveeerrrr
the deal with uk is inconsequential. rover and austin martin got some lower rate but still higher than before, there is a cap of 100k vehicles per year. uk will buy us beef but not the hormone beef. formal signing may or may not happen in 12 months.