Fed Chair Jerome Powell warns that tax policies may push the U.S. economy into recession! Let’s analyze the impact on the global economy with LiveTrade Pro right here!
POLITICS: Warning from the Fed Chair
Fed Chairman Jerome Powell emphasized that the import tax policies are putting strain on the U.S. economy. According to Powell, the increase in import taxes has slowed economic growth, pushed inflation higher, and may lead to an increase in unemployment in the near future.
However, Powell reassured that the Fed is not rushing to cut interest rates but will adjust financial measures flexibly to maintain economic stability amid current uncertainties.
GEOPOLITICS: U.S.-China Trade Tensions
Trade tensions between the U.S. and China continue to escalate as China rejects U.S. claims about a 245% tariff on Chinese goods. The Chinese Ministry of Foreign Affairs called it a “meaningless data game” and asserted that the U.S. is using tariffs as a tool to exert economic pressure on China.
China has declared that it will respond strongly if the U.S. continues to push forward with tariffs that affect their interests. This is clearly a trade war with no signs of cooling down.
ECONOMY: Policy Responses from California and South Korea
On the other hand, California has filed a lawsuit to stop the high import tariffs imposed by President Trump. If California wins, it could set an important precedent that limits the president’s power in making tax policy decisions.
Meanwhile, the Bank of Korea has decided to keep interest rates unchanged in April to counter the impact of U.S. tariff policies. This shows South Korea’s caution in the face of global instability.
In particular, the price of SJC gold has surged to 118 million VND per tael, a sign of investor uncertainty as the market is heavily impacted by global economic and political fluctuations.
Overall, from the Fed’s warning about economic decline to China’s response in the trade war, and the decisions made by California and South Korea, it is clear that the global economy is facing numerous shifts and uncertainties.
To stay updated with the latest market analysis and global financial developments, don’t forget to visit LiveTrade Pro for timely information and to prepare for the next investment opportunities.
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