TARIFF WAR SHOCKER TRUMP VS POWELL RATE BATTLE EXPLODES

● Rate War Showdown

Trump’s Intervention in Monetary Policy and the Global Economic Development: How is it Actually Unfolding?

1. Trump’s Remarks on Interest Rates and Monetary Policy and Exercise of Influence

This summarizes Trump’s strong stance, intervening in tariffs, geopolitics, and even interest rates as he pleases.
Trump ignores the principle of monetary policy independence and attempts to directly pressure Chairman Powell and the Fed’s policies through social media and media play.
His remarks, as if “I make the law,” and his active intervention in interest rate decisions are noticeable.
As such, Trump’s remarks are likely to have a significant impact on the market, economic prospects, and overall interest rate policy.

2. The Fed’s Interest Rate Decision and Inflation Judgment

Chairman Powell will carefully determine whether to raise, freeze, or lower interest rates based on various economic indicators.
There is also an analysis that the journey of interest rate hikes may show weak effects, as seen in the cases of developed countries such as Japan.
The stance of operating monetary policy based on the premise of temporary inflation requires a more cautious approach, based on the experience of hyperinflation in the past 41 years.
The Fed is expected to maintain the concept of neutral interest rates (currently around 3%) and adjust interest rates considering various indicators such as prices and employment.

3. Trump’s Dismissal, Shadow Fed, and Countermeasures and Response Strategies

Trump is indirectly trying to intervene in monetary policy by hinting at the dismissal or shortening the terms of Fed members through the media and social media.
However, Chairman Powell’s term is legally guaranteed, and actual dismissal is only possible if legal conditions are met.
In addition, he is attempting to influence the future direction of monetary policy by pre-appointing a shadow Fed chairman.
These actions are interpreted as including an intention to exercise economic power, going beyond the boundaries of fiscal and interest rate policies.

4. Tariff Hikes and Price Stability, Impact on the International Economy

Tariff hikes act as a factor that can directly affect consumer prices.
As in the case between the United States and China during the past tariff war, the effect of tariff rate increases on inflation rates is complex.
Not only the United States but also major countries such as Europe and Japan are paying close attention to price stability issues and interest rate policy management in relation to the tariff war.
The uncertainty of tariff policy will be monitored for its impact on the overall economy and reflected in economic forecasts and inflation judgments.

5. Future Prospects and Conclusion, Comprehensive Impact on Overall Economic Policy

In the short term, Trump’s tough remarks and media play will cause market anxiety, but in the long term, the solid employment and economic indicators of the US economy will be major variables in interest rate policy decisions.
Trump’s attempt to intervene in monetary policy dependent on his methods is expected to be decided after Chairman Powell thoroughly analyzes economic indicators.
Ultimately, key economic variables such as inflation, interest rate policy, fiscal policy, and tariff hikes will intertwine and dominate the future economic flow.

Summary

This article chronologically summarizes Trump’s movements to intervene in the overall economy, including tariffs, geopolitics, and interest rate policies, and Chairman Powell’s cautious response.
Various means are introduced, such as Trump’s pressure on monetary policy using the media and social media, and attempts to dismiss and appoint a shadow Fed.
The Fed plans to determine whether to raise, freeze, or lower interest rates based on economic indicators and the concept of neutral interest rates.
The uncertainty of tariff hikes and their impact on consumer prices and the international economy is also emphasized.
In the end, it is time to closely monitor future economic steps, focusing on inflation, interest rate policy, fiscal policy, economic prospects, and Trump-related top SEO keywords.

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● China’s Products – Devastated, Tariffs

Recent US-China Tariff War and Global Economic Outlook

U.S. Tariff Imposition Stages

After the U.S. initially imposed a 20% tariff on China, it added another 34%, bringing the total tariff to 54%.

The Trump administration issued an ultimatum that it would impose an additional 50% tariff if negotiations proved difficult after the initial tariff imposition.

This creates a crisis situation where tariffs could rise to a maximum of 144% on some goods.

These tariff increases are interpreted as stemming from the U.S.’s ‘superior’ image, aiming to gain an advantage in economic negotiations.

China’s Response and Counterattack Strategies

The Chinese government responded to the U.S. tariff measures by imposing a blanket tariff of 34% on all goods in retaliation.

The Xi Jinping government is seeking cooperation with other countries instead of negotiating with the U.S., and is trying to strengthen its internal circulation system.

High export dependence within China raises concerns that declining exports could lead to a general economic downturn, affecting real estate and local finances.

Along with the internal economic crisis, the Chinese government’s hardline response may adversely affect the Xi Jinping regime.

Global Economy and the Impact of the Trade War

The tariff war between the U.S. and China is not just a bilateral issue, but has a significant impact on the global economy as a whole.

Countries such as South Korea, Taiwan, and Vietnam are also engaging in negotiations between the U.S. and China, reorganizing their trade relations.

Export companies may suffer a major blow due to sudden order reductions and overseas market contractions caused by tariff increases.

At the same time, there is a possibility of negative impacts on the overall economy, such as global supply chain disruptions, worsening economic outlook, and weakening investment sentiment.

In particular, key keywords such as ‘global economy,’ ‘economic outlook,’ ‘tariff,’ ‘trade war,’ and ‘export’ are deeply related to this situation.

Future Prospects and Response Strategies

If the U.S.’s hardline tariff policy and China’s retaliatory measures persist in the long term, the global trade order could be significantly reorganized.

The existing export-oriented Chinese economy is expected to try to overcome the crisis through domestic demand revitalization and diversification strategies.

Other countries are also expected to diversify risks through new trade negotiations and multilateral cooperation between the U.S. and China.

Companies are in a situation where they need to prepare for cost burdens and supply chain restructuring due to tariff changes and develop response strategies in advance.

Ultimately, this trade war will be an important turning point that will change the global economic landscape.

Overall Conclusion

The tariff war between the U.S. and China is more than just an economic sanction; it is an issue that will have a significant impact on the global trade structure and economic outlook.

Both countries are maintaining a hardline stance and choosing confrontation rather than reaching a negotiated settlement.

This raises concerns about side effects such as China’s export slump, internal economic downturn, and global supply chain collapse.

Therefore, it is time for governments and companies to strengthen diversification strategies and negotiating power to respond.

The U.S. initially imposed a 20% tariff on China, then 34%, creating a situation where it could rise to a maximum of 144%.
China responded by imposing a 34% tariff on all items, trying to strengthen its internal circulation system.
This situation shows the impact of the conflict between the U.S. and China on the global trade order, focusing on key keywords such as global economy, economic outlook, tariffs, trade war, and exports.
Countries and companies are in urgent need of trade war risk diversification and response strategies.

[Related Posts…]

Prospects for Tariff Increases and Intensified Trade Conflicts

How the Trade War Will Change the Global Economic Landscape

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– “중국산 제품 싹 다 망했다” 관세 폭탄 맞은 중국 실제 상황 [박수학의 중국속보]