The president of her annex Fed In Boston he stated yesterday (27.3.2025) that it seems “inevitable” not to increase the inflation In the US, with the new duties decided to impose US President Donald Trump.
“It seems inevitable that customs duties will increase inflation in the short term,” Susan Collins, who is involved in the monetary policy on the monetary policy taken by the Fed, said during an event in the city. If there is a “increase in price level”, there will be a “quick” reflection “in inflation,” Ms Collins said. “Then, in time, there will be inflationary forces,” he continued.
According to her, if there are other customs duties, or if they are more general, inflationary tendencies will “insist” more.
Ms. Collins’ comments are in line with those of her colleague on Fed, president of the Federal Central Bank Branch in St. Louis, Alberto Mousalem, who also votes on the Federal Reserve’s monetary policy decisions this year.
Yesterday Wednesday (26.3.2025), Mr Mousalem predicted that customs duties would probably have an impact on prices in a direct but timely “limited” manner, but the indirect consequences of these measures could have more “persistent” consequences on the course.
At its latest meeting on March 19, the Fed decided to leave its on -site on -site on the up to the results of President Trump’s policies more clearly.
Its executives also reviewed their forecasts for the course of the largest economy in the world.
In particular, they estimated that inflation would be higher at the end of 2025 than they made in December (2.7% at an annual rate).
At least according to the official PCE index, inflation was about 2.5% on a annual basis in January, from 2.6% a month earlier. Data on February is expected to be announced today.
Source: RES – EIA