The True Cause of Tariffs Reducing Inflation
How Tariffs Can Lower Inflation Without Hurting the Economy The recent research from the San Francisco Federal Reserve raises an interesting question: why do tariffs impact the economy in seemingly contradictory ways? After analyzing 150 years of data, the researchers found that tariff increases often lead to lower inflation rates and higher unemployment rates. This […]
Republican lawmakers oppose $2,000 tariff payments, pointing to concerns about inflation and national debt.
Republican Concerns Over Trump’s Tariff Check Proposal Republican lawmakers have expressed skepticism regarding President Trump’s plan to provide $2,000 checks funded by tariff revenue. Their concerns center on potential inflationary impacts, the national debt—which exceeds $37 trillion—and the necessity of Congressional approval for such measures. Trump has promised these payments before the 2026 midterm elections, […]
Central bank minutes show division on upcoming rate reductions and concerns about inflation
Fed Interest Rate Decisions and Economic Outlook Panelists EJ Antoni and Mark Summerlin will delve into the upcoming nominees for the next Federal Reserve chairman and the interest rate decisions that are set for December. Minutes from the Federal Reserve’s last policy meeting indicate that the likelihood of rate cuts in December and early next […]
Bessent cautions about an ideal scenario for inflation during Trump’s economic initiatives.
U.S. Treasury Secretary Discusses Economic Pressures U.S. Treasury Secretary Scott Bessent recently shared insights about the Trump administration’s initiatives aimed at making everyday life more affordable, including plans for $2,000 payments to working Americans. In an interview on “Sunday Morning Futures” with Maria Bartiromo from FOX Business, Bessent raised alarms about a potential “perfect storm” […]
EUR/USD continues to decline as inflation pressures in the Eurozone ease
EUR/USD Trading Activity EUR/USD is holding steady around 1.1585 as the U.S. trading session is about to begin on Wednesday. This comes after a drop to a new weekly low of 1.1565, largely prompted by fresh eurozone inflation data. Risk aversion is boosting the safe-haven U.S. dollar (USD), especially as markets gear up for the […]
FX Today: The FOMC Minutes and UK inflation figures capture everyone’s focus
The U.S. dollar (USD) showed a somewhat positive trend on Tuesday, building on recent gains due to ongoing risk-averse sentiment and caution as important U.S. data looms. What to anticipate on Wednesday, November 19th. The U.S. dollar index (DXY) varied between 99.50 and 99.60 amid a general drop in U.S. bond yields and mounting caution […]
The Fed’s Tariff Research Completely Changed the Inflation Narrative
San Francisco Fed Challenges Common Tariff Beliefs For a long time, economists and the media have warned about the impacts of customs duties, particularly that they increase prices. This has been a key point in lawsuits against President Donald Trump’s trade policies. The common understanding is that higher tariffs result in higher costs for consumers […]
Bessent cautions about an inflation ‘perfect storm’ during Trump’s economic efforts
U.S. Treasury Secretary Discusses Inflation and Economic Plans U.S. Treasury Secretary Scott Bessent provided an update on the administration’s efforts to tackle affordability issues and plans for $2,000 checks for working Americans. His comments were made during an interview with FOX Business’ Maria Bartiromo on “Sunday Morning Futures.” Bessent highlighted that a “perfect storm” could […]
A Century and a Half of Evidence Demonstrates Tariffs Reduce Inflation
New Analysis Challenges Tariff Impact Understanding A fresh evaluation of 150 years of tariff practices suggests that the business community may have misinterpreted the effects of tariffs on pricing and employment. This revelation carries significant implications, particularly for grasping President Donald Trump’s trade strategies and the Federal Reserve’s potential actions. Researchers from the Federal Reserve […]
AUD/USD rises due to aggressive RBA position and increase in Q3 inflation
AUD/USD Update As of Monday, the AUD/USD pair edged up to around 0.6520, reflecting a 0.40% increase for the day. The Australian dollar has been gaining traction lately, largely due to comments from Andrew Hauser, the Deputy Governor of the Reserve Bank of Australia (RBA). He emphasized the need for a restrictive monetary policy to […]