- Economic outlook clouded by trade politics that have increased uncertainty
- Tariffs to lead to higher US inflation, lower growth starting later this year
- Fed may be in a difficult position if both inflation and unemployment rise
- Equally concerned tariffs will lead to higher unemployment as economy slows
- Tariffs could create persistent upward pressure on inflation by disrupting supply chains
- Too soo to know how tariffs will affect the economy
There’s nothing new here that hasn’t already been said or needs clarification. The Fed dug in and held its ground this week and the comments above reflect that position, as policymakers continue to mull over the impact of Trump’s tariffs.
This article was written by Justin Low at www.forexlive.com.
