Fed’s Barkin: Tariffs to lead to higher inflation and lower growth in US and abroad

• Tariffs to lead to higher inflation and lower growth in US and abroad.
• Trump tariffs are without modern precedent.
• Given economic strength, monetayr policy is in a good position.
• I’m concerned that tariffs will lead to higher unemployment.
• Economic outlook clouded by trade policies that have increased uncertainty, hurt consumers and business sentiment.

These are just token remarks by Barkin as nobody at the Fed seems to be willing to offer anything in terms of forward guidance or at least personal expectations. Only Fed’s Waller laid out what would be his strategy depending on the tariffs outcome and right now his “more hawkish” scenario is playing out. It remains to be seen though if other countries will accept the 10% tariff rate or take a harder stance.

This article was written by Giuseppe Dellamotta at www.forexlive.com.