Author: Chen Daotian
Since March 2021, when inflation began to significantly exceed the target of 2%, more than four years have passed, and the Federal Reserve has yet to bring the inflation rate back to 2%. Currently, Trump's tariff war is set to bring new price pressures, and the tax cut plan may provide additional economic stimulus. High inflation is likely to enter its fifth year, whereas the well-known stagflation of the 1970s lasted only a decade. The Federal Reserve's relentless pursuit of the 2% inflation target is long and arduous, reminiscent of Gabriel García Márquez's "Love in the Time of Cholera."
Tariffs and Prices: Where Have They Increased?
After the two "pauses" in tariffs on April 9 and May 12, negotiations between the United States and its major trading partners, the EU, China, and Japan, have not yet yielded results. However, with nearly two months of relatively complete data on the newly implemented tariffs that are already in effect, we can roughly estimate the impact of the tariffs on prices.