Understanding the Impact of Tariffs on Inflation

Raphael Bostic, President of the Federal Reserve Bank of Atlanta, recently discussed the potential effects of tariffs on inflation. According to Bostic, tariffs increase costs, which could lead to higher prices. However, he emphasized that it's still unclear whether these price increases will result in sustained inflation.

Timing and Expectations

Bostic also mentioned that significant clarity on the impact of current policies might not be available until late spring or summer. He noted that inflation has been volatile this year, which aligns with his initial expectations.

Recent Developments

This discussion follows an executive order signed by US President Donald Trump, which temporarily pauses tariffs on certain goods from Canada and Mexico.