- In the first public records Since the Central Bank has changed interest rates, Boston Federal Reserve President Susan Collins said that the tariffs will be refueled, but not felt for a long time. The tariff said that inflation could be the transition and he admitted that he was a danger of expectation.
Prior to the victory of President Donald Trump’s election night, some economists warned that the tariffs promised at the campaign trail could inflate. Now the Federal Reserve president is agreed.
“Tariffs are inevitable to increase inflation in the near future,” Boston Federal Reserve President Susan Collins, during the conversation on Thursday according to Bloomberg. “My modal worldview can be short-lived.”
However, such a prediction confessed to the threat. “There are risks around it and can be more persistent and larger growth, depending on how things open,” Collins said.
This was the first time after the last meeting of Collins, Fed’s last meeting between 4.25% and 4.5% and 4.5%. Collins will be “switch” after the announcement, and in a press conference in a press conference in a press conference in which this main work may be “transition”, appeared in the comments made by President Jerome Powell. The Central Bank covers a position of waiting and seeing the policy rather than reducing its policy. Collins will keep interest rates for a longer period of fed, according to ReutersHe called the appropriate action plan.
The last time the Central Bank called the inflation pass, it was wrong. Pandemic-period inflation is hotter and warm until you reach four decades in four decades almost three years ago. Fed increased interest rates to break inflation inflation. Once the symptoms of cooling, the Fed, the proportions began to cut. However, now the Central Bank has repeatedly recycled interest rates this year and repeated tariffs, repeated tariffs lost interest rates due to uncertainty caused by a policy. Again, inflation came to the cooler than expected in February. Consumer prices have increased by 2.8% compared to a year, but the data blew tariffs and trade wars.
It seems that there are two arguments when it comes to tariff-inflation dispute. On the one hand, tariffs can cause a lumpy shock at the price, or the prices that damage consumers can be a longer term. When facilitates are facing additional taxes on imported goods, it tends to transfer these expenses to consumers. Therefore, economists see the Central Bank’s approach to either appropriate or risky.
“The risk is then added this year, if additional tariffs are added, the tariffs can have a longer impact on inflation,” said Apollo Chief Economist Torsten Slok said Fortune After the Fed decision.
However, Moody’s chief economist Mark Zandi otherwise feels.
“Tariff-inflation inflation is likely to be a transition, but it is impossible to know this with any confidence,” Delivery, “he said,” Because it is not a way of knowing, “he said. “
This story was first displayed on Fortune.com
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