US faces mounting costs if trade war escalates – study
Fed economists monitor effect on asset and consumer goods prices under blanket 25% tariff
An across-the-board 25% tariff on imports to the US would be likely to raise the prices of investment assets by 9.5% and consumer prices 2.2% in the near term, according to research published by the Federal Reserve Bank of San Francisco.
The study, published on May 19, was written by Bart Hobijn, a senior economist at the Chicago Fed, and Fernanda Nechio, a vice-president at the San Francisco Fed. It focuses on direct near-term effects and does not account for supply chain adjustments, mark-ups
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