PN Economics Editor Bill Wood discusses how the Trump administration’s tariff policies have contributed to a sharp decline in the value of the U.S. dollar. Wood emphasizes the growing pressure on Fed Chair Jerome Powell and outlines potential risks if political interference undermines market confidence.

In an interview with Bloomberg on Friday, Federal Reserve (Fed) Governor Christopher Waller said that the private sector is not doing as well as it seems, per Reuters. "Business executives say they are not hiring or firing."

The pivot from rate hikes in 2022 and 2023 to rate cuts was widely forecast, and a big reason behind the S&P 500's epic 24% return in 2024. Most thought the Fed would continue to put its foot on the economic gas pedal, reducing rates in 2025, too.

Fed’s Hammack has affirmed her support for a wait-and-see approach to a Fed rate cut, further quenching hopes of a July cut.

Federal Reserve Governor Christopher Waller said late Thursday that he continues to believe that the Fed should cut its interest rate target at the July meeting, citing mounting economic risks and the strong likelihood that tariff-induced inflation will not drive a persistent rise in price pressures, per Reuters.

Donald Trump has reignited his feud with Federal Reserve Chair Jerome Powell, hinting at his potential removal if re-elected. Trump criticizes Powell'

It hasn't been an easy start to 2025 for Jerome Powell. Unfortunately for the Fed chair, the second half of the year is likely to be even tougher.

New research from the Federal Reserve Banks of New York and San Francisco says markets put the odds of zero interest rates lower today than in the recent past, but economic uncertainty raises the potential for drastic cuts in the "medium to long term.