A question we get asked a lot about is how the Federal Reserve is likely to react to President-elect Donald Trump’s tariffs. The short answer is thatraising duties on importswill be inflationary, will slowdown U.S. growth or even tip the economy into a recession, and will force the Fed to raise interest rates in reaction to higher prices. Sometimes a single analyst or pundit claims all three things will happen.
. Ironically, some of the same people who claim the Fed would raise rates in response to tariffs argued that the Fed was over-tightening in 2022 and 2023 because they saw inflation as mostly a result of supply constraints. They understood properly that the main effect of higher rates is on the demand side, which means they would not be very effective at holding down “pass-through” price increases from tariffs.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
United States United States Latest News, United States United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Breitbart Business Digest: What We Saw at Trump’s Trade Revolution in ChicagoSource of breaking news and analysis, insightful commentary and original reporting, curated and written specifically for the new generation of independent and conservative thinkers.
Source: BreitbartNews - 🏆 610. / 51 Read more »
Breitbart Business Digest: Trump Is Rising in New York CitySource of breaking news and analysis, insightful commentary and original reporting, curated and written specifically for the new generation of independent and conservative thinkers.
Source: BreitbartNews - 🏆 610. / 51 Read more »
Breitbart Business Digest: How Trumponomics Can Reduce InflationSource of breaking news and analysis, insightful commentary and original reporting, curated and written specifically for the new generation of independent and conservative thinkers.
Source: BreitbartNews - 🏆 610. / 51 Read more »
Breitbart Business Digest: Is Harris Gaining Ground on Economic Issues?Source of breaking news and analysis, insightful commentary and original reporting, curated and written specifically for the new generation of independent and conservative thinkers.
Source: BreitbartNews - 🏆 610. / 51 Read more »
Breitbart Business Digest: Trump Won the Presidency and a Mandate for TrumponomicsSource of breaking news and analysis, insightful commentary and original reporting, curated and written specifically for the new generation of independent and conservative thinkers.
Source: BreitbartNews - 🏆 610. / 51 Read more »
Breitbart Business Digest: Trump Is Not Going to Force Powell Out of the FedSource of breaking news and analysis, insightful commentary and original reporting, curated and written specifically for the new generation of independent and conservative thinkers.
Source: BreitbartNews - 🏆 610. / 51 Read more »