On April 9, Wall Street Journal reporter Nick Timiraos, known as the "Federal Mouth Bottle", posted a message saying that Federal Reserve Chairman Jerome Powell is facing an increasingly difficult task.

Economists, business owners and investors generally believe that the uncertainty brought about by Trump’s sudden massive tariff hikes — many of which will take effect on Wednesday — will push the economy closer to a recession by weakening jobs and consumption. This may require a rate cut to ease downward pressure on the economy.

Meanwhile, the amount of tariffs imposed could lead to a sharp increase in prices for many imported goods, including raw materials used by domestic manufacturers. This could make Fed officials worried about inflation and support maintaining current interest rates despite growing risks to the economy and labor markets.

"They are in a dilemma," said former Fed director Lawrence Mayer.

The U.S. Congress gives the Fed responsibility to maintain a low and stable inflation and a healthy labor market. Since more than four decades ago, no U.S. presidential policy has put these two tasks of the Fed in such a profound potential conflict.