Comment by cmurf

Tariffs may not even last 4 months. Trump demanded Powell reduce interest rates, the FRB declined. The might be Trump's way of forcing the Fed to reduce interest rates, by inducing a recession with massive inflation. And then Trump takes the tariffs away once the Fed gives him what he wants.

FRB won't reduce interest rates if there's inflation alone. They'd only reduce interest rates if the economy also slows down into recession territory.

That's the short term view.

In the long term view, they are the biggest tax increase in the history of the country, therefore they are potentially the biggest tax decrease in the history of the country. Political fodder, even for a corpse.