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Originally Posted by txdot-guy
Isn’t that what the democrats said about inflation after covid. Don’t trust anyone that says that they “know” that inflation is temporary.
If inflation occurs the fed will want to raise interest rates and they are already too high already.
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Appreciate your cordial reponse.
Persistent, month over month inflation is caused when price equilibrium is off via an increase in demand, increase in input costs, and/or monetary policy (printing money).
Biden quite literally increased demand with 15 million or so illegals and printing money. Thats why you saw a multiple month trend and inflation like we haven’t seen in a long time.
A tariff has the potential to be a one-time hit based on what part of the supply chain absorbs the cost. For example - I read a recent snippet how Japanese autos have not gotten more expensive for US consumers as the manufacturer has absorbed the tariff. Not suggesting each situation will be like this, but it’s not zero either.
My question for you is if tariffs are so bad, why do other countries tariff US goods and have done so for decades? Are how do these tariffs impact their inflation?
