Monetary Matters with Jack Farley cover image

Joseph Wang & George Goncalves on Rates, Tariffs, Fed’s Balance Sheet, and Yen Carry Trade

Monetary Matters with Jack Farley

CHAPTER

The Impact of Tariffs on Federal Reserve Policy Decisions

This chapter delves into how tariffs influence the Federal Reserve's monetary policy, particularly in relation to interest rates and inflation. It examines the historical context of central banking responses to price increases stemming from tariffs and suggests that current policies may lead to unexpected rate cuts.

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