WSJ Opinion: Potomac Watch Inflation Ticks Up to 2.7%, as Trump's Tariffs Boost Prices
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Jul 15, 2025 Joe Sternberg, a columnist and Fed watcher for The Wall Street Journal, delves into the recent inflation spike to 2.7%, linking it to Trump's tariffs. The discussion highlights the strain on consumer prices and the Federal Reserve's tricky position in addressing rising costs. Sternberg also examines Trump's push for lower interest rates and the controversy surrounding the Fed's costly renovations, shedding light on the intersection of politics and economic policy.
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Inflation Rise Linked to Tariffs
- Inflation in June rose 2.7% year over year, showing acceleration in price increases.
- Tariffs on imported goods, especially household furnishings, are contributing to price rises and political concern.
Multiple Inflation Drivers Persist
- Inflation's persistence is influenced by factors like pandemic supply chain issues and government spending.
- Trump administration policies like tariffs risk reversing progress on inflation control made by prior bills.
Wages Lag Inflation Pressure
- Real wages fell slightly in June as inflation outpaced wage gains.
- Federal Reserve is unlikely to cut interest rates soon given the inflation situation and tariff risks.