Two high-stakes economic decisions await Trump in the new year ahead

Two major economic policy decisions are on the horizon in Washington: the Supreme Court’s decision on tariffs and the White House’s anticipated announcement of the next decision. Federal Reserve chair. Both developments have important implications for the future of trade, markets and US monetary policy.

The President has two cases in the Supreme Court Donald Trump These allegations, which pose a “life or death threat” for the United States, have forced the nation’s highest court to confront how far a president can go in redirecting U.S. trade policy.

Learning Resources Inc. – Trump and Trump – VOS Selections Inc. Their lawsuits were filed by an educational toy manufacturer and a family-owned wine and spirits importer challenging Trump’s tariffs.

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Both situations raise a central question: International Emergency Economic Powers Act (IEEPA) gave the president the authority to impose tariffs or whether the move crossed constitutional lines.

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Tariffs are taxes that the government imposes on imported goods. Although companies pay these taxes at the border, they often cover the additional costs by raising prices; This means that consumers ultimately shoulder most of the burden.

Since Trump announced sweeping “Liberation Day” tariffs in April, the total duty income It rose to $215.2 billion in fiscal year 2025, which ended Sept. 30, according to the Treasury Department’s Customs and Certain Excise Duties report.

This revenue strength was also reflected in the new financial year. According to the latest statement of the Treasury, the government has collected $96.5 billion in taxes since October 1.

Meanwhile, two candidates are vying for a role shaping the direction of U.S. monetary policy: Kevin Hassett and Kevin Warsh.

His appointment to head the world’s most powerful central bank comes as persistently high costs of living are testing Trump economic agenda. The Federal Reserve, which sets borrowing costs and influences inflation, remains one of the most important institutions in terms of Americans’ daily purchasing power.

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The next Fed chairman will take on one of the most influential roles in U.S. economic policymaking, overseeing interest rate decisions and the central bank’s efforts to keep inflation in check.

Side by side photo of Kevin Hassett and Kevin Warsh. (Anna Moneymaker/Tierney L. Cross/Bloomberg/Getty Images)

Warsh, a former Morgan Stanley banker, has emerged as a vocal critic of current Fed leadership and has sharpened his attacks as he positions himself as a potential alternative to Chairman Jerome Powell. In 2006, he became the youngest person to serve on the Federal Reserve Board of Governors.

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Hassett is Trump’s chief economic adviser and a staunch defender of the administration’s policies. Currently director of the White House National Economic Council, he held two senior roles during Trump’s first term and advised the president on economic policy during the 2024 campaign.

Treasury Secretary Scott Bessent, who helped shape Trump’s short list for the Fed’s top job, said he has known Warsh and Hassett for more than 20 years and sees them both as equally qualified.

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Federal Reserve Chairman Jerome Powell is expected to finish his term in May 2026. (Official White House Photo: Daniel Torok)

Trump has called for sharp interest rate cuts and called on the Federal Reserve to cut its benchmark interest rate to 1% to jumpstart economic growth.

Criticism from Trump to Fed Chairman Jerome Powell, His 2017 appointee to the job sometimes turned personal, with the president calling the Fed chairman sarcastic nicknames.

Powell will finish his term in May 2026, when the next president takes office.