"Federal Reserve's Monograph" Nick Timiraos: Tariff policy or when the Federal Reserve ’s interest rate will restore interest rate cuts

PaNews January 29th, according to Golden Ten reports, "Fed's Monograph" Nick Timiraos said that as Trump considers the use of tariffs on a bolder, a key issue shrouded the Fed: Any price increase will stimulate to how much the price will stimulate to the extent. The public's expectations for higher inflation rates? Whether the Federal Reserve will restore interest rate cuts depends to a large extent on the prospect of inflation, and this year's inflation prospects may depend on whether Trump has redeem the threat of tariffs.

When Trump first served as president, the trade war upgraded, and the Fed reduced interest rates in 2019. The Fed is worried that the crackdown on the trade war on business emotions and investment may overwhelm the potential effects of rising prices brought about by tariffs. At that time, the impact of tariffs on economic activities "did not cause inflation, because it was not a period of inflation," Steven Kamin, who was the head of the Federal Reserve's international financial department and currently worked in the US Enterprise Institute.

The Fed may respond to different reactions after the tariffs take effect this time because the United States has just experienced a period of great inflation. He expects the Federal Reserve to "be more inclined to oppose tariffs in this round than the previous round." If the policy of improving tariffs is promulgated, the Fed will maintain interest rates at a higher level than the original.