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Since his appointment, President Trump and his advisers have explained the aggressive economic approach to the president of rates with a litany of conflicting ideas. Other countries “tear” America and must be stopped. The United States are fighting a drug war with Canada, Mexico and China. Rates will help in paying the debt of $ 36 trillion.
The Messaging Hod Power comes when the American economy shows signs of tension in response to Mr Trump's steep rates on Canada, Mexico and China and while preparing for “mutual” rates from all over the world on 2 April.
The rates have uncertainty and moistened business investments and consumer sentiment sown while they rotate every day. They will probably also prevent the Federal Reserve Rates from lowering, because policy makers are waiting to see exactly with which Meet Mr. Trump goes through and how they influence the economy.
But instead of trying to provide more cohesion about their economic strategy, Mr Trump and his advisers seem to embrace the uncertainty of his approach as a position, not a bug.
“Absolutely, there will be some uncertainty between now and 2 April,” said Kevin Hassett, the director of the National Economic Council of the White House, this week at CNBC in the midst of what investors should make of Mr Trump's trade agenda.
Mr. Trump, when asked if he would give the business community more clarity about his general approach, largely rejected the concern that companies needed predictability.
“No, I think they say that,” he told Maria Bartiromo, the host of “Sunday Morning Futures” on Fox News, this month. “You know, it sounds good to say. But for years the Globalists have collected the great globalists from the United States. They have taken money from the United States. And it is what we do, get something back. And we are going to treat our country honestly.”
Mr. Trump has also refused to exclude a recession, an outcome that warns economists and analysts, could be more likely in the midst of such uncertainty.
The uncertainty has attracted the attention of the Federal Reserve, which on Wednesday kept the rates stable and projected higher inflation and slower growth for the American economy.
“Uncertainty is remarkably high,” said Jerome H. Powell, the chairman of the Federal Reserve.
This week, the Ratingsbedrijf Fitch warned that the global trade war that Mr Trump started will reduce global growth and the American output will slow down, while the prices are increased and the interest rate lets of the Federal Reserve postpone.
“Tarif increases will result in higher American consumer prices, lowering real wages and increasing the costs of companies, and the increase in the uncertainty of the policy will take a toll on business investments,” said Brian Coulton, Chief Economist of Fitch.
The increase in uncertainty can largely be attributed to the fact that Mr Trump regards rates as a negotiating instrument for resolving policy issues of all varieties rather than a tool for resolving trade disruptions. As part of that approach, he wants to remain unpredictable to maximize his negotiation boom.
“It does not help that the Trump 2.0 rollout has been missing strategic coherence and effective orchestration to date,” wrote Navin Girishankar, the president of the Economic Security and Technology department of the Center for Strategic and International Studies, in an analysis this week. “The resulting policy volatility is already moving on to financial markets and, by some accounts, to the real economy and communities throughout the country.”
Henrietta Treyz, the director of the economic policy at the Veda Partners investment firm, said that legislators remained hopeful that the rates were a saber-racing negotiating tactics and that markets would calm down if there was finally “certainty” about them. Investors, however, remain shy.
“There is an emerging view of Capitol Hill that once we are after 1 April, there will be certainty, and to calm markets,” said Mrs. Treyz. “That vision is not shared by most investors who think that the uncertainty is the motivation in the short term, but take the economic consequences more seriously.”
Although Mr Trump has shown the willingness to postpone or issue the rates as part of his negotiating strategy, it is not clear that the market reaction has influenced its decisions in his second term. And unlike his first term, Mr. Trump's best economic assistants do not seem to be inclined to moderate his instincts.
“This policy is the most important thing that America has ever had,” Howard Lutnick, the secretary of the Trade, told CBS News when this month was asked whether Mr Trump's rates were worth it even if they came into the US economy in a recession. “It's worth it.”
Treasury -Secretary Scott Bessent, who refused this week to exclude the possibility of a recession, suggested in an interview on Tuesday that he was optimistic that some of the threatening rates could be reduced if other countries would lower their trade barriers. However, he did not lose the idea that protectionism is a good policy.
“President Trump has identified various critical industries, critical industries that we let away from us,” said Mr Bessent on the Fox Business Network. “He wants to reduce production to the United States, and we set these rates.”
The continuous drama seems to take a toll from the US economy, which holds business activities and slows down some types of business investments.
Lawrence H. Summers, who served as Treasury Minister under President Bill Clinton, said that even if Mr. Trump switched back his rates, they already cause damage.
“These are in -depth problematic steps, even if they are turned back,” said Mr. Summers. “They generate enormous uncertainty that the economy holds out.”
