Tariffs worsen monetary policy trade-offs and inflation – study
Fed researchers find evidence of persistence in cost pressures stemming from levies
Further research from the Federal Reserve board confirms that tariffs are likely to increase inflationary pressures in the US.
The international finance discussion paper, published this month, also argues that tariffs worsen monetary policy trade-offs.
The authors – Pablo Cuba-Borda, Albert Queralto, Ricardo Reyes-Heroles and Mikaël Scaramucci – write that “higher trade costs for final goods cause large but short-lived inflation spikes, while increased costs for intermediate inputs trigger more
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