Donut shop offers insight into upcoming interest rate decision in U.S.

Economic Impact of Tariffs - The Trump administration's 19% tariff on Indonesian palm oil significantly increased costs for businesses like Melo Cream [2] - Melo Cream's weekly palm oil expenses rose from approximately $2,000-$2,100 to $4,200 due to the tariff [2] - The tariff is projected to cost Melo Cream an additional $175,000 annually [3] - Melo Cream consumes 220万 (2.2 million) 磅 (pounds) of palm oil on average [3] Federal Reserve's Perspective - The Federal Reserve is monitoring the impact of tariffs on the US economy [2] - The president of the Chicago Fed, Austin Goulsby, visited Melo Cream to assess the economic impact firsthand [3] - Interest rates are a key factor affecting business decisions, particularly for investments like equipment upgrades costing $1 million [4] - Markets are anticipating a potential interest rate cut in September [6][10] - New inflation data indicates that wholesale prices are at a 3-year high, potentially complicating the Fed's decision to cut rates [11] Political Pressure on the Fed - President Trump has called for the Fed to lower interest rates [7] - Goulsby refutes claims that the Fed's decisions are politically motivated [7][8]