- In inflation rises or progress stalls, the Fed will need to figure out if it’s from overheating or tariffs
- Distinguishing the cause of any inflation will be critical for deciding when or if the Fed should act
- Inflation has come down, is approaching 2% goal
- Covid pandemic experience shows supply chain impacts can have a material effect on inflation
- Opinions differ widely on how much tariffs would get passed into prices, suppliers may have to eat the cost
There’s nothing groundbreaking here but he makes a point worth pondering on supply chains, which remain far too fragile.
This article was written by Adam Button at www.forexlive.com.
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