The Economic Conflict: Why Tariffs Prevent Lower Interest Rates

Описание: Fed Chair Powell confirmed: the Fed would have cut interest rates if not for tariffs. This highlights a key economic conflict. Tariffs increase costs, directly fueling inflation. The Fed's role is to control inflation, which means maintaining higher rates when prices rise.

The Consequence: Trying to impose tariffs while simultaneously demanding lower interest rates is economically contradictory. Tariffs push inflation forecasts up, forcing the Fed to keep rates elevated. This means a direct hit to citizens: higher prices for goods and higher costs for borrowing. It's a non-pragmatic approach that burdens the public with conflicting policy outcomes.

Source: https://tinyurl.com/3myvue7b

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