Last Friday in Jackson Hole, Federal Reserve Chairman Jay Powell finally – and grudgingly – admitted what the Trump team has been saying all along: tariffs don’t fuel inflation.
At most, tariffs create a one-time adjustment in prices, not the kind of runaway spiral that demands punishing rate hikes. And even that one-time bump may be negligible if, as we have long argued, foreign exporters – not American consumers – shoulder most or all of the burden.
The implication is clear: whether the impact is zero or merely a one-time step-up in prices, there is absolutely no justification for the Fed to hide behind "tariff uncertainty" as an excuse for overly restrictive interest-rate policy.
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https://www.foxnews.com/opinion/what-fed-must-do-now-after-jerome-powells-jackson-hole-epiphany https://www.foxnews.com/opinion/what-fed-must-do-now-after-jerome-powells-jackson-hole-epiphany.amp