Trump: Powell Has “Easiest Job,” But Stagflation Risk Looms

Federal Reserve Chairman Jerome Powell “has one of the easiest jobs in Washington,” according to President Donald Trump—but markets may not agree.

Powell has argued for a cautious approach, citing risks tied to Trump’s recent 50% tariff on copper, which could impact everything from tech to construction. I Photo: Federalreserve Flickr

A rally in stocks reflects uncertainty over whether the economy can withstand Trump's trade policies, Barron’s Daily’s Brian Swint reported on July 10. Minutes from the Fed’s June meeting released Wednesday show divisions among policymakers.

Some are ready to begin rate cuts, while others remain concerned that tariffs could fuel inflation.

Powell has argued for a cautious approach, citing risks tied to Trump’s recent 50% tariff on copper, which could impact everything from tech to construction.

If tariffs choke off growth while stoking prices, the result could be stagflation—slowing growth alongside rising inflation. Trump has criticized Powell for acting too slowly in the past and reiterated his push for immediate rate cuts.

Earnings season may shed more light on whether markets or policymakers are reading the tea leaves correctly.