U.S. Tariffs Not Linked to Inflation, Claims New Fed Governor Miran
In the world of economics, two influential figures have been making waves recently: Federal Reserve Chair Jerome Powell and newly appointed Fed member Stephen Miran. Their views on the impact of tariffs and immigration on the US economy have sparked a lively debate.
According to Powell, higher tariffs have pushed up prices in some goods categories, but the impacts are not yet significant and could potentially be a one-off. On the other hand, Miran sees no inflationary pressure from President Trump's import tariffs.
The uncertainty caused by Trump's trade policy, which makes it difficult for companies to know how much they can import into the US under what conditions, is not mentioned in relation to inflation by Miran. However, other members of the Fed Board view tariffs as a risk factor contributing to rising inflation. They argue that the higher tariffs lead to increased import prices that US companies and consumers bear, potentially accelerating inflation in the coming months.
When it comes to immigration, Miran believes that an influx of millions of new immigrants in a short period drives up housing prices in the US. This view contradicts the widely held view that a shortage of labor forces production costs and prices for food and services to rise. Powell, however, has not directly addressed Miran's claims about immigration and inflation.
Miran assures that he acts independently in his economic analysis at the Fed. He advocated for a stronger interest rate cut of 0.5 percentage points at this week's Fed meeting, a position that was met with caution from other Fed members, as the available information does not specify a consensus or position from Fed members supporting such a large cut, indicating mixed signals on economic conditions.
President Trump, in recent months, has consistently claimed that tariffs do not increase inflation. This assertion contrasts with the general belief among economists that Trump's forced US tariffs on imports from around the world will increase the price level in the United States.
The article does not provide evidence to support or refute Miran's claims about immigration and inflation. It's a complex issue that requires further research and analysis to fully understand its impact on the US economy. As the debate continues, one thing is clear: the economy is facing challenges, and the Fed is working to navigate these uncertainties to maintain a stable economic environment for all Americans.
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