2 April | Dollar

Richmond Fed warns Trump policies risk fueling inflation and reducing jobs

Richmond Fed warns Trump policies risk fueling inflation and reducing jobs

Federal Reserve Bank of Richmond President Tom Barkin believes that US President Donald Trump's tariffs risk fueling inflation and driving up unemployment.

He warned of potential price shocks that could spark tensions between frustrated consumers unwilling to pay more and suppliers insisting on necessary price hikes.

The official also highlighted the potential impact of Trump's trade policies on the US labor market. Barkin explained that higher prices could reduce demand and hurt sales, ultimately weighing on employment.

At its March meeting, the Federal Reserve kept interest rates steady in the 4.25% to 4.5% range. The US central bank also raised its unemployment forecast for this year while cutting its US GDP growth estimate to 1.7%.

Elena Berseneva MarketCheese
Expectation: 1250 pips
Selling USDJPY with 146.450 target while anticipating BoJ rate decision
Today at 06:40 AM 18
Period: 17.09.2025 Expectation: 500 pips
Buying SPX on 0.5% Fed rate cut
Yesterday at 11:38 AM 169
Period: 24.09.2025 Expectation: 1500 pips
USDCAD is set to fall ahead of interest rate decisions
Yesterday at 10:57 AM 154
Period: 23.09.2025 Expectation: 500 pips
NVIDIA shares approach gap closure at $170.50
Yesterday at 10:26 AM 136
Period: 31.12.2025 Expectation: 200 pips
Buying NVIDIA shares with $195 in view
Yesterday at 08:54 AM 37
Period: 24.09.2025 Expectation: 1300 pips
EURUSD is expected to correct after Fed announces rate decision
Yesterday at 07:14 AM 158
Go to forecasts