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49 sats \ 1 reply \ @metadavid 11h \ on: The Fed Leaves Fed Funds Rate at 4.5% as Economic Storm Clouds Gather econ
They’re placed in an impossible situation. As much as Trump wants them to cut rates, tariffs alone are highly likely to trigger inflation, so expanding the money supply would make it worse.
In the price sense, that's right. Although, for a large consumer nation, more of the tax incidence falls on the foreign producers, so it's not as inflationary as the same tariff rate implemented by a small nation.
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