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Fed reviews economic effect of Trump tariffs

Posted on 5/27/25 at 7:28 am
Posted by bigjoe1
Member since Jan 2024
906 posts
Posted on 5/27/25 at 7:28 am
quote:

A May note by Fed board economists estimated that the tariffs imposed on China in February and March had already added about a third of a percentage point to goods prices excluding food and energy in the first months of the year, and that but for the tariffs those prices would have fallen — a conclusion that helps explain why policymakers are reluctant to cut interest rates until they know more about inflation that may be in the pipeline.

Larger tariffs have been put in place since that study was done, and even bigger ones are threatened.

"Once we start to get some clearer contours, I think that's the time to really start to use these models more robustly, " Atlanta Fed president Raphael Bostic said in comments to reporters on May 20 in Florida.
Newsmax
Posted by UltimaParadox
North Carolina
Member since Nov 2008
47345 posts
Posted on 5/27/25 at 7:31 am to
Since the actual tariffs themselves keep changing, not sure how any realistic outlook can be completed until the dust settles.

Nobody has any clue where we end up. Is still possible that the final rate is 0
Posted by SDVTiger
Cabo San Lucas
Member since Nov 2011
87862 posts
Posted on 5/27/25 at 7:36 am to
I remember when the Fed economists said inflation was tranistory in 21 and was the reason they didnt raise rates

Now we are here
Posted by GrapevineTigah
Grapevine, Texas
Member since Dec 2003
23 posts
Posted on 5/27/25 at 7:48 am to
So they are showing that they can learn. That's a good thing.
Posted by ynlvr
Rocket City
Member since Feb 2009
5091 posts
Posted on 5/27/25 at 7:50 am to
quote:

Fed economists said inflation was tranistory in 21

And none of us believed that to be true
Posted by SDVTiger
Cabo San Lucas
Member since Nov 2011
87862 posts
Posted on 5/27/25 at 8:06 am to
quote:

So they are showing that they can learn. That's a good thing.


Or a better description is that they are following their own history and are too late yet again
Posted by GrapevineTigah
Grapevine, Texas
Member since Dec 2003
23 posts
Posted on 5/27/25 at 8:14 am to
I would call that a Trumpian description.
But, to be fair, think about the risk of being too early.
I wouldn't want to be triggering inflation by having rates that are too low.
Posted by SDVTiger
Cabo San Lucas
Member since Nov 2011
87862 posts
Posted on 5/27/25 at 8:21 am to
quote:

I would call that a Trumpian description.


I would call it a factual one. Crazy how this subject has brought you out to post since 2003
Posted by GrapevineTigah
Grapevine, Texas
Member since Dec 2003
23 posts
Posted on 5/27/25 at 8:25 am to
I've retired. Interest rates impact me more now.
Posted by DarthRebel
Tier Five is Alive
Member since Feb 2013
23330 posts
Posted on 5/27/25 at 8:32 am to
quote:

by GrapevineTigah
I've retired. Interest rates impact me more now.


Bull shite.
This post was edited on 5/27/25 at 8:34 am
Posted by Shepherd88
Member since Dec 2013
4814 posts
Posted on 5/27/25 at 9:17 am to
quote:

remember when the Fed economists said inflation was tranistory in 21 and was the reason they didnt raise rates


To their credit. It was transitory until Congress passed the Covid bills and started pumping out PPP money and Stimulus checks. Fed was already under fire at that point though.
Posted by SDVTiger
Cabo San Lucas
Member since Nov 2011
87862 posts
Posted on 5/27/25 at 9:42 am to
quote:

To their credit. It was transitory until Congress passed the Covid bills and started pumping out PPP money and Stimulus checks


So they couldnt see this would cause inflation and the need to raise rates

But they do know tariffs will cause inflation (after saying it was a one time hike) so they cant lower rates

Makes sense
Posted by SuperSaint
Sorting Out OT BS Since '2007'
Member since Sep 2007
144974 posts
Posted on 5/27/25 at 9:49 am to
quote:

And none of us believed that to be true
RodgerTheDodo said the USD would see hyperinflation and be as worthless as he is
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