Inflation Is Rising. What Will That Mean for Trump’s Tariffs?
Published On Feb 28, 2025, 7:14 AM
President Trump continues to threaten tariffs, raising concerns about their potential impact on inflation and the U.S. economy. Economists speculate that these tariffs could lead to higher inflation and reduced growth. A crucial Personal Consumption Expenditures (PCE) report is anticipated, which may show only minor relief for consumers. There are signs of economic slowdown, evident from declining consumer confidence, home sales, and rising jobless claims. With a significant number of federal employees potentially facing job cuts, household spending may decrease further, affecting sectors like home appliances and travel.
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The ongoing tariff situation, combined with inflationary pressures, may prompt the Federal Reserve to maintain higher interest rates longer than anticipated. This could lead to a decrease in consumer spending and slow down economic growth.
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