Marketplace All-in-One Tariffs come for your morning cup of Joe
5 snips
Aug 26, 2025 Americans guzzle an astounding 450 million cups of coffee daily, but looming tariffs are brewing trouble for coffee sellers. A hefty 50% import duty on Brazilian beans could steeply raise consumer prices. Meanwhile, allegations surrounding a Federal Reserve leader introduce turmoil into interest rates and the housing market. As the political landscape shifts, the caffeine-loving public may soon find their morning ritual a little costlier.
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Limits On Firing Fed Governors
- The president cannot freely remove Federal Reserve governors; the Banking Act of 1935 limits firing to 'for cause.'
- Removing independents risks investor confidence and could push long-term interest rates higher.
Confidence Drives Long-Term Rates
- Market perceptions of Fed independence influence long-term rates regardless of short-term policy.
- Alex Hacquez warns moves that shake U.S. confidence will filter into mortgages and credit costs.
Tariffs Can't Reshore Tropical Coffee
- U.S. tariffs aim to make imports pricier so domestic production becomes more competitive.
- Coffee can't be mass-grown in the U.S., so tariffs mainly raise consumer prices instead of reshoring supply.