Economists predict that the Trump administration’s trade policies could push up prices for consumers, making it harder for Fed officials to cut rates.

Outside of a U.S. President bending norms, the Fed also faces challenges in achieving its economic objectives. Inflation remains above its 2% target: Its preferred measure is at 2.4%, though core prices — considered a better gauge of where inflation is headed — rose 2.8% in November from a year ago.

Trump has threatened still more tariffs, proposing 25% on goods from Mexico and Canada, an additional 10% on China and 25% on Colombia after that country initially refused deportation flights from the U.

The man U.S. President Donald Trump has chosen to oversee his tariff agenda says hitting Canada with 25 per cent across-the-board duties would be an emergency measure to achieve border security — and could be followed by more tariffs in the future.

President Donald Trump's plan for international tariffs could have impacts on national interest rates. The Federal Reserve is keeping a close eye on inflation as Trump considers new tariffs on Mexico and Canada.