Wells Fargo: Federal Reserve may not place too much emphasis on inflation caused by Trump's tariff policies

Odaily Planet Daily reported that the Trump administration's aggressive tariff policies may lead to further inflation, but economic models show that this will be a one-time increase in price levels rather than a long-term inflation spiral. Jay Bryson, an economist at Wells Fargo, said that this may convince the Federal Reserve to be more patient in dealing with inflation caused by tariffs, especially as the labor market continues to slow down. His viewpoint supports Wells Fargo's benchmark expectation that the Federal Reserve will cut interest rates three more times this year, each by 25 basis points. But Bryson warns that if the trade war becomes more prolonged, such as a series of tit for tat international retaliation, the Federal Reserve may have to take inflation consequences more seriously. (Golden Ten)