Source: PROGRESSIVE FARMER, 6/25/18


It was a coincidence, surely, that the Federal Reserve’s latest interest-rate increase and President Trump’s latest tariff broadside occurred only a few days apart. Yet a common theme underlies them both, and it can be summed up in a single word: inflation.
Inflation has been hibernating in recent years, allowing the Fed to keep interest rates low even as the economy has recovered from the financial crisis. Now, though, the Fed is seeing signs that inflation is awakening. Higher tariffs would accelerate that revival and force the Fed to raise rates higher and faster.

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