The inflationary consequences of tariffs
Tariffs not only raise consumer prices, but the budget deficit feeds a decline in purchasing power for the dollar unless the deficit is funded by an increase in consumer savings.
This article details why the inflationary consequences of Trump’s tariff policies are severely underestimated, with important consequences for the dollar and the Fed’s interest rate policies. The implications are that an economy which is already tipping into recession is only seeing the beginning of its difficulties.
