Reported 26 days ago
Alberto Musalem, president of the St. Louis Federal Reserve, cautioned that the inflation effects from President Trump's new tariffs might not be temporary as previously assumed by Fed Chair Jerome Powell. While direct price increases from tariffs are expected to be brief, Musalem highlighted the risk of more persistent indirect effects on inflation, particularly as consumers shift to locally produced goods, potentially elevating prices further. As uncertainty remains over the economic impact of tariffs, Musalem suggests maintaining current interest rates may be prudent, pending the inflation outlook.
Source: YAHOO