Attention Economy


Tuesday, January 28, 2025

Tariffs and Fed Policy

Why Tariffs Are a Key Wild Card for the Fed
https://www.wsj.com/economy/central-banking/the-trouble-with-tariffs-what-you-think-about-prices-matters-to-the-fed-a4c7acf7
A trade war that stokes inflation would be much more complicated for the central bank now than it was during Trump’s first term. 

High Inflation Sows Debate About New Fed Playbook for Tariffs
https://www.nytimes.com/2025/01/31/us/politics/fed-tariffs-inflation-canada-mexico.html
Fresh tariffs amid high inflation are making the Fed’s job uniquely difficult and feeding uncertainty about what to expect for interest rates this year.