The impending tariff deadline of July 9 is creating uncertainty in trade negotiations between the United States and various countries. Jerome Powell, speaking at the ECB Forum, indicated that tariff policies have affected the Federal Reserve's decisions on interest rates. Despite most trade deals being in limbo, a 90-day pause on tariffs initiated by President Trump is set to expire soon. Trump has hinted at potentially not extending this pause, yet there are discussions suggesting that the European Union is open to trade agreements with the U.S., albeit with some modifications. Meanwhile, U.S. and Canada negotiations appear to be progressing toward a deal by July 21. Powell remarked that the U.S. economy remains generally healthy, suggesting that inflation is behaving as expected, despite challenges posed by tariffs. He noted that the central bank has held off on adjusting interest rates due to the impacts of tariffs, which have influenced inflation forecasts significantly.

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