The latest interest rate decision by the Federal Reserve was not surprising, and the possibility of a rate cut in July can basically be ruled out. However, this decision did not immediately provoke a strong reaction from Trump. So, what exactly caused Trump to take more aggressive actions later? What impact will his sudden increase in tariffs have on the market?

Before the Federal Reserve announced its interest rate decision, Trump attempted to exert pressure, suggesting that there might be a rate cut in September. However, Federal Reserve Chairman Powell did not acquiesce to this hint, instead maintaining a consistently ambiguous stance, emphasizing the need to base future monetary policy on economic data. This position aligns with expectations and is consistent with the Federal Reserve's established style.

However, the matter did not end there. After Powell stated that he needed to observe economic data, Trump quickly took action. Seemingly to 'create' more noteworthy economic data for Powell, Trump announced a series of tariff measures.

First, Trump announced a 40% tariff on Brazilian goods, in addition to the previous 10%, bringing the total tariff rate to an astonishing 50%. This decision will have a significant impact on multiple industries, especially those relying on Brazilian raw materials, such as beverages, coffee, and meat. Considering that about 70% of the relevant products from Brazil are exported to the United States, this tariff policy will undoubtedly have a significant effect on business costs and the inflation rate.

In addition, Trump also adjusted the tariff policies on other copper-related goods and goods priced below $800. These measures seem to be aimed at forcing the Federal Reserve to reconsider its monetary policy stance based on economic data.

This series of actions highlights the tense relationship between the Trump administration and the Federal Reserve, while also reflecting the complex interactions between trade policy and monetary policy. Market participants need to closely monitor the far-reaching impacts that these changes may bring, including potential shocks to inflation, corporate earnings, and overall economic growth.