Tariff Pause, Imperial Crisis

The article discusses the Federal Reserve's recent shift in monetary policy, characterized as a "pause" in interest rate hikes, and its implications for the global financial system. The author contends that this decision was not driven by genuine economic stability, but rather by the growing realization that the financial system was teetering on the precipice of a crisis potentially exceeding the magnitudes of 2008 and March 2020. The article suggests that the Fed's previous strategy of raising interest rates to combat inflation had destabilizing effects on the global economy, particularly for heavily indebted nations and corporations. It highlights the fragility of the banking sector, citing the collapse of several regional banks earlier in the year as a warning sign. The author argues that continuing with aggressive rate hikes would have likely triggered a more widespread financial meltdown. The article emphasizes the underlying issues of wealth inequality and the dominance of financial speculation in the global economy. It implies that the Fed's actions are ultimately aimed at protecting the interests of the wealthy elite, even at the expense of broader economic stability. The "pause" is portrayed as a temporary reprieve, with the underlying problems remaining unresolved and the potential for future financial crises still looming large. find the original article here: https://www.wsws.org/en/articles/2025/04/10/alfb-a10.html