USA - A few days after Donald Trump won the US presidential election, Amber Walliser stocked up, spending $2,000 (£1,538) on appliances she believed would get more ...
expensive as the White House started to put new taxes on imports. But that was a temporary splurge. These days, her family is buckling down, worried about job security, and a possible economic downturn, which experts believe could be more likely because of US President Donald Trump's tariffs.
It means no new car, or big vacation this year. They have even shelved plans to start trying for a second child. “We are saving as much as possible, just hoarding cash, trying to bulk up our emergency fund", the 32-year-old accountant from Ohio said.
Amber's worries are being echoed across the US, as tariffs and other changes by the White House hit the stock market, spark turmoil for businesses, and add to inflation concerns. That is the tricky scenario that officials at the US central bank will have to address at their interest rates meeting on Wednesday. The Federal Reserve, which is supposed to keep both prices and employment stable, typically lowers borrowing costs to help support the economy, or raises them to slow down price rises, as it did when prices shot up in 2022.
Though analysts widely expect the Fed to leave interest rates unchanged on Wednesday, they are far more divided about what to expect in the months ahead, as tariffs could both raises prices and slow economic growth. "Their job has become a lot harder," said Jay Bryson, chief economist at Wells Fargo.
In a speech earlier this month, the head of the Federal Reserve, Jerome Powell, noted that surveys of sentiment have not been good indicators of spending decisions in recent years, when the economy has performed well across many mainstream metrics, despite sour views. (BBC)