Trump, Inflation and Tariffs
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The Federal Reserve is widely expected to hold interest rates steady next week, with investors focused on new central bank projections that will show how much weight policymakers are putting on recent soft data and how much risk they attach to unresolved trade and budget issues.
Despite widespread fears to the contrary, President Donald Trump’s tariffs have yet to show up in any of the traditional data points measuring inflation
Former Treasury Secretary and Federal Reserve Chair Janet Yellen expects inflation to rise to “at least 3% or slightly over” due to tariffs, despite recent encouraging signs of price stabilization. During a CNBC interview,
The Consumer Price Index rose 2.4 percent in May, from a year earlier, a reading that reflects only the initial impact of President Trump’s tariffs.
Both the Senior Citizens League, an advocacy group for older adults, and independent Social Security and Medicare analyst Mary Johnson expect the 2026 COLA to be 2.5%, up from their forecasts of 2.4% last month. The average COLA, which is calculated using a formula based on consumer prices, has been 2.6% over the past 20 years.
Fresh inflation figures due out Wednesday could offer an early glimpse into whether President Donald Trump’s tariffs are beginning to drive up the cost of everyday products.
Speaking at Forbes Iconoclast Summit, BlackRock’s CEO Larry Fink said he expected higher inflation if the tariffs are implemented in the coming months.
The rate of inflation fell in the spring to the lowest level in more than four years even as high U.S. tariffs threatened to increase prices again. Is the bill from trade wars about to come do?