The Federal Reserve (FED) "Former Hawk King": Expecting a 100 basis point rate cut is too naive, Powell will not clean up Trump's tariff mess.

Odaily News Trump administration's epic tariffs on most global imports, the Federal Reserve may be unable to resolve. Former "hawkish king" and former New York Fed President Bill Dudley warned that market expectations for interest rate cuts exceeding 100 basis points this year are "too naive," and can only be realized if the U.S. economy experiences a comprehensive recession. In the next six months, inflation may surge to 5%, and economic growth is likely to slump by 50% to 1%, putting the Federal Reserve in a dilemma of accelerating interest rate hikes leading to recession and cutting rates worsening inflation. Don't expect the Federal Reserve to save the U.S. economy dragged down by tariffs; the only question now is: how deep will the damage be? (Jin10)