February 05, 2025 at 07:33PM
In inflation rises or progress stalls, the Fed will need to figure out if it’s from overheating or tariffs
Distinguishing the cause of any inflation will be critical for deciding when or if the Fed should act
Inflation has come down, is approaching 2% goal
Covid pandemic experience shows supply chain impacts can have a material effect on inflation
Opinions differ widely on how much tariffs would get passed into prices, suppliers may have to eat the cost
There’s nothing groundbreaking here but he makes a point worth pondering on supply chains, which remain far too fragile.
This article was written by Adam Button at www.forexlive.com.
Fed’s Goolsbee: Ignoring supply chain impacts like tariffs would be a mistake
