Three Federal Reserve officials warned on Monday that the Trump administration's plans for trade tariffs could lead to inflation. They argued that the uncertainty surrounding price outlooks necessitates a more cautious approach to interest-rate cuts. The officials highlighted the lack of historical data on the impact of broad-based tariffs, making it difficult to predict the extent and duration of their effects.
THE Trump administration's plans for trade tariffs come with inflation risks, three Federal Reserve officials warned on Monday, with one arguing that uncertainty over the outlook for prices calls for slower interest-rate cuts than otherwise.Trump on Saturday slapped across-the-board tariffs on the three largest US trade partners, though by late Monday the leaders of Mexico and Canada had won a 30-day reprieve after they agreed to stepped-up efforts to stem drug trafficking.
'The ultimate question about whether that is significantly inflationary depends on exactly how it plays out,' as there are scenarios where the Fed may be able to shrug off these increases and ones where it might not be able to.'To the extent that were to impact things like inflation expectations then you'd have to,' Bostic told reporters after a speech.
Business INFLATION TARIFFS FEDERAL RESERVE INTEREST RATES ECONOMY
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Canada’s Trudeau announces tariffs on US in retaliation for Trump’s tariffsPrime Minister Justin Trudeau warns the coming weeks will be difficult for Canadians and that Trump's tariffs will also hurt Americans
Read more »
Trump Tariffs and Rate Cut Hopes Shake MarketsWorries about potential Trump tariffs and dwindling expectations for interest rate cuts sent shockwaves through global stock markets on Wednesday. A report suggesting Trump may declare a national economic emergency to justify wide-ranging tariffs fueled market anxieties.
Read more »
Asian Equities Retreat as Trump's Policies Fuel Inflation FearsAsian stocks dipped and currencies weakened on Thursday amid growing concerns that Donald Trump's proposed tariffs and economic policies could lead to inflation and slow US interest rate cuts. MSCI's emerging market stock gauge fell 0.4%, with Thailand, Taiwan, and Singapore experiencing notable declines. Trump's consideration of a national economic emergency to justify tariffs on both allies and adversaries has raised anxieties about global trade and price stability. The threat of tariffs, coupled with concerns about China's economic growth, has put pressure on Asian currencies and bonds.
Read more »
Canada has counter-tariffs ready if Trump launches trade war, Trudeau says | Curtis HeinzlJustin Trudeau says Canada is ready to respond with counter-tariffs against the US if President-elect Donald Trump follows through on his threat to begin a trade war in North America.
Read more »
Trump's Return to Tariffs: Trade Wars Loom as US Pressure MountsFormer President Donald Trump's second term promises a resurgence in tariffs, targeting partners and rivals on issues like migration and drug trafficking. Trump aims to protect US industries, but this strategy could trigger new trade wars, impacting the global economy, US-China relations, and alliances. Trump's potential tariffs on Mexico, Canada, China, and BRICS nations, as well as potential increases on European food and drinks, raise concerns among US businesses about rising import costs and retaliation.
Read more »
Trump Delays China Tariffs, Aims for Global Trade DealPresident Trump's first day in office saw a delay in implementing China-specific tariffs. Instead, he opted for a broader approach, aiming to address unfair trade practices globally and investigate China's adherence to a previous trade deal. This decision signals a shift towards negotiation and a potential new trade agreement with China.
Read more »