Fed: tariffs are much larger than anticipated

The president of the Bank of the Federal Reserve (FED) of Chicago, Austan Goolsbee, warned Tuesday that American tariffs, which were much greater than most market observers anticipated, represent a real risk for US importers who have very few support options.

Outstanding aspects

Tariffs are much larger than anticipated.

The Fed has to adopt a long -term vision, not as the stock market, which is volatile.

There is disagreement between companies over how fast or how much the increase in tariffs will be transferred to consumers, which could lead to suppliers.

I can’t wait for GDP data to come out to know the impact on investment.

It is not clear how Fed would react to a negative shock of the offer.
Feeling measures are almost in free fall, that is a concern.

The relationship between feeling and spending is not as strong as before.

Companies are not going to invest when it is not clear what the rules are.

There is anxiety that high inflation returns.

Source: Fx Street

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