Fed’s Powell Says Tariff-Driven Inflation Remains a Big Question

Federal Reserve Chair Jerome Powell on Wednesday said the US central bank is still struggling to determine the impact of tariffs on consumer prices. “The question is, who’s going to pay for the tariffs?” Powell said in response to a question during his testimony before the Senate Banking Committee.

So Powell says this being still in the clutches of those who put their foot in their mounth by "idiot Trump wants to destroy the American economy by tariffs, the Americans will pay for it and inflation and high prices will result from it." As a PhD wrote to me: "It is just common sense!" Oh, is it?

There is a serious lack of the knowledge of economics for reasons too extensive to be described here including "price elasticity" and the avoidance of tariffs by foreign manufacturers who can increase production at their American plants, such as BMW and Mercedes, thereby fulfilling the two objectives of Trump's policy: (1) Reducing the unsustainable negative trade balance (reduced by 55% to date) and (2) increasing the use of the American labor as opposed to foreign labor.

And the five months of economic data, low inflation rate year to year of 2.4% and CPI and PPI notwithstanding.
This is the mind set of those who "believe" not "know" "just wait for the next week."

Please do not pull the widely gyrating UoM Inflation Expectations Index on me simply because the 420 consumers whom the UoM asks have no basis for determining this and being bewildered are just repeating what they hear from know-nothing pundits, "experts" and TV talking heads.

Trump said to Powell: "Lower the rates now when the inflation is low. We could save $900 billion [he means in payments on Federal debt]. If there is higher inflation in the future, raise the rates again, I do not mind."

Who do you think is right?

I think the reason it is a question is, the Fed does not have data that supports inflation being an issue.

Trumpy no likey

Is he gaslighting the economy based on the tariff? If does it, it means "He is not welling to help the economy.

For how long?

It's premature to believe all will be alright when all the tariffs haven't been applied yet and businesses are doing their best to avoid being affected by the current tariff level

TACO together with "Stupid Powell" become systemic risk for the world economy.