The President of the Chicago Federal Reserve issued a warning that Trump's tariff threats may delay the interest rate cut timeline.
Goolsbee stated on Friday that President Trump's latest proposed tariff threats have made the Fed's MMF policy more complicated and may also delay the timeline for interest rate cuts.
Why has the Federal Reserve's interest rate cut expectation plummeted to 5.3%, yet the dollar continues to decline?
On Friday (May 23), the USD continued to decline during the North American session, retracing gains from the previous trading day, trading at around 99.4. After the U.S. House of Representatives passed the spending bill proposed by Trump, the dollar came under pressure and fell. According to reports, the non-partisan Congressional Budget Office disclosed that this "grand and beautiful bill" will add an additional burden of $3.8 trillion to the federal government's debt of $36.2 trillion over the next decade. The bond market expressed deep concern, with the 30-year U.S. Treasury yield soaring to 5.15% on Thursday, a substantial increase from 4.64% in early May, marking the highest level since the end of December 2023 at 5.18%.
Suspension of tariffs cannot hide the hidden worries: economists warn that the U.S. economy faces ten major risks.
Apollo Global Management's chief economist, Torsten Slok, pointed out that the outlook for the U.S. economy still hides multiple risks.
Express News | Gold Is Trading Higher After President Trump Recommended a 50% Straight Tariff on the European Union, Staring Jun. 1
How much does the dollar need to depreciate to eliminate the trade deficit? Deutsche Bank: 40%!
Deutsche Bank warns that the dollar needs to depreciate by 40% to eliminate the trade deficit, and that the effects of tariffs are limited and may also trigger pain from rising prices and economic slowdown.
New York Federal Reserve officials: Initial signs of tightening in the MMF market are evident, and the pressure from the Fed's balance sheet reduction is becoming apparent.
Officials at the New York Federal Reserve Bank, responsible for managing a large securities investment portfolio, stated that the Federal Reserve's actions to reduce its balance sheet have begun to exert pressure on the repurchase agreement market.
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all the way, rite? 
