Tariffs boost US inflation expectations
The tightening of import duties has led to the growth of inflation expectations in the US – as noted by Jerome Powell, the Chair of the US Federal Reserve, which acts as the country’s central bank, TASS reports
“Recently, some indicators of short-term inflation expectations have risen. We see this both in the market and in surveys, with both consumers and businesses citing tariffs as a key factor in the surveys. Inflation has started to rise. We think this is partly a reaction to the tariffs, and there may be a delay in further progress [against price rises] this year,” he said at a press conference following the regular meeting of the financial regulatory authority’s steering committee.
The head of the US financial regulator noted that the increase in duties cannot be seen as the only factor behind the rise in inflation in the country, “Let me say that it will be very difficult to estimate exactly how much of the inflation is due to tariffs and how much is due to other factors. You may have seen that in the first two months of the year, inflation on goods rose quite significantly. It is very, very difficult to try to track that through actual tariff increases, taking into account what is tariff-related and what is not.”
Mr. Powell emphasised that the Federal Reserve System does not see a significant increase in expected inflation in the long term. The financial regulator will closely monitor the situation around inflation and tariffs.
