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The Federal Reserve (FED) Ball warns: Trump is holding back the Fed! Tariff policies will cause the economy to suffer a return to the "early pandemic".
Trump's tariffs have made the world jump to their feet, including Barr, a domestic Fed official, who said the president made the Fed "very difficult." (Synopsis: Trump's second son confirms holding a large amount of bitcoin: my father also holds a lot, optimistic about BTC into digital gold) (Background supplement: Bitcoin strategic reserve is difficult to produce? Democrats are "encircling" Trump's new crypto deal) Michael Barr, former vice chairman of the US Federal Reserve (Fed), recently issued a serious warning against Trump's large-scale tariff policy. He made it clear that these unprecedented tariffs are likely to "push up inflation, slow economic growth, and even lead to higher unemployment" in the future, posing a potential risk of stagnation inflation (inflation and unemployment). Trump has put the Federal Reserve, which is tasked with maintaining price stability and full employment, facing unprecedented policy dilemmas. This article will provide an in-depth look at Barr's core ideas. Tariffs will become a hotbed of inflation and recession According to Reuters, Barr stressed in his analysis that if the tariff policy is implemented, its scale and scope will be rare in modern economic history. While there is uncertainty about the final form and exact impact of these policies, the economic risks are fairly clear. Barr believes that high tariffs could lead to severe disruptions in global supply chains, which in turn will create persistent upward pressure on inflation, as companies need to invest a lot of time and money to re-plan their marketing networks and production lines, and these increased costs are likely to eventually be passed on to consumers. According to estimates by the Yale University Budget Lab, if tariffs are implemented in 2025, the overall price level in the United States may rise by 2.9% in the short term. Even taking into account the availability of substitutes for some goods, prices could still rise by 1.7 percent, which means that the average annual purchasing power of each U.S. household could be lost by about $2,700. Challenges of Supply Chain Restructuring and Potential Unemployment Risk The impact of tariffs on global supply chains is of particular concern. If companies want to find new sources of supply or adjust production bases, they will undoubtedly need to invest significant time and resources. Barr particularly stressed that such supply chain disruptions could hit small businesses the hardest. Many small businesses offer specialized products or services that are difficult to replace, and high tariffs undoubtedly increase their operating costs, and may even trigger a wave of closures, further exacerbating supply chain disruptions. The depth of this impact is comparable to the dire situation faced by global supply chains in the early days of the pandemic. Related reports The US "GENIUS" stablecoin regulatory law failed! Democratic Party: First ban the Trump family from profiting through cryptocurrencies, bitcoin soared 104,000" U.S.-UK TARIFF AGREEMENT + TRUMP interpreted goodwill to China, the four major indexes of U.S. stocks rose together Bitcoin broke the $100,000 mark! Trump choked Fed chairman "did not cut interest rates" [Fed Barr warns: Trump drags Fed back! Tariff policy will make the economy return to the "early days of the epidemic" This article was first published in BlockTempo's "Dynamic Trend - The Most Influential Blockchain News Media".