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US Politics

US Politics

Fed Officials Are Bracing For Higher Inflation, Slower Growth From Tariffs

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Summary
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84% Informative

Fed officials say tariffs could raise consumer prices, stoking inflation, slowing the economy, and costing jobs.

Rising inflation and unemployment would force the Fed to choose between fighting inflation and saving the labor market.

Central bankers are in the same boat as other experts: waiting to see how the trade wars unfold.

The Fed 's main tool to fight inflation is changing the federal funds rate.

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