Former New York Fed President: Expecting a 100-basis-point rate cut is too naive; Powell won't clean up Trump's tariff mess

TechFlow news, April 7 — According to Jinshi Data, the Federal Reserve may be powerless to counteract the sweeping tariffs imposed by the Trump administration on most global imports. Bill Dudley, former President of the New York Fed and once known as the "hawk king" at the Fed, warned that market expectations for over 100 basis points of rate cuts this year are "too naive," and such cuts would only be possible if the U.S. economy entered a full-blown recession. Inflation could rise to 5% over the next six months, while economic growth might halve to just 1%. The Fed will face a dilemma of "raising rates accelerating recession, cutting rates worsening inflation." Don't count on the Fed to rescue the U.S. economy dragged down by tariffs; the only remaining question now is "how severe the damage will be."