TechFlow, on January 8, according to Jinshi News, the Trump administration's aggressive tariff policies may lead to further inflation. However, economic models suggest this would result in a one-time increase in price levels rather than a long-term inflation spiral. Jay Bryson, economist at Wells Fargo, said this could persuade the Fed to be more patient in responding to tariff-driven inflation, especially amid an ongoing slowdown in the labor market. His view supports Wells Fargo's baseline forecast that the Fed will cut interest rates three more times this year, by 25 basis points each. But Bryson warned that if the trade war becomes more protracted—such as through a series of retaliatory international measures—the Fed might have to take the inflationary consequences more seriously.
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