The Federal Reserve (FED) spokesperson: Trump's tariff policy puts Powell in a "dilemma".

On April 9, Nick Timiraos, a reporter for the Wall Street Journal, known as the “mouthpiece of the Federal Reserve”, published an article saying that Fed Chairman Jerome Powell is facing an increasingly difficult task. Economists, business owners and investors widely agree that the uncertainty created by Mr. Trump’s sudden massive tariff hikes, many of which will take effect on Wednesday, will push the economy closer to recession by weakening employment and consumption. This may require interest rate cuts to ease downward pressure on the economy. At the same time, the magnitude of the tariffs could lead to a significant increase in the prices of many imported goods, including raw materials used by domestic manufacturers. This could leave Fed officials worried about inflation and support keeping interest rates at their current levels, despite growing risks to the economy and the labor market. “They’re in a dilemma,” said Lawrence Meyer, a former Fed governor. The U.S. Congress has given the Fed the responsibility of keeping inflation low and stable and a healthy labor market. Since more than four decades ago, no U.S. president’s policies have exposed these two tasks of the Fed to such a deep potential conflict.