Fed official highlights inflation dangers from Trump's policies
The Fed's Tom Barkin cautioned business leaders in Baltimore about the potential dangers of inflation influenced by Trump's policies on the US economic landscape. Read Full Article at RT.com.
TroibNews 
Tom Barkin addressed business leaders in Baltimore, discussing the uncertainty stemming from the president-elect's return to the White House.
A senior Federal Reserve official emphasized the inflation risks linked to US President-elect Donald Trump’s forthcoming term in January.
During his speech on Friday, Richmond Fed President Tom Barkin acknowledged that while the US economy might experience considerable growth, there are potential inflationary pressures to consider, especially if hiring and wages rise.
Barkin highlighted several encouraging signs, such as robust consumer spending, minimal job losses, and consistent wage growth. However, he recognized that consumers are starting to resist the escalating prices, indicating a possible turning point in inflation trends.
“How economic policy uncertainty resolves will matter. But, with what we know today, I expect more upside than downside in terms of growth,” Barkin stated. He warned, “more risk on the inflation side” could arise, particularly if the labor market improves.
Though Trump has promised to tackle inflation, there are concerns that if he acts on certain plans regarding tariffs and immigration, a spike in inflation might occur.
In recent years, immigration has played a pivotal role in bolstering the labor force and job creation. In November, Trump pledged to impose 25% tariffs on all goods imported from Mexico and Canada, a strategy that might clash with his campaign commitment to lowering price increases. As noted by recent US Census data, the US is the largest importer of goods globally, with Mexico, China, and Canada listed as the top three suppliers.
Before the election, approximately seven in ten voters expressed significant concern over food prices, according to AP VoteCast. During a September stop at a grocery store in Pennsylvania, Trump assured shoppers that he would work to reduce prices.
Barkin pointed out that plans for higher tariffs generate considerable uncertainty, with some analysts warning that such measures could lead to inflation by raising costs for both businesses and consumers.
The Federal Reserve has begun to revise its policy expectations in light of Trump’s upcoming presidency. Fed Chair Jerome Powell recently indicated that officials are factoring in tentative projections regarding the economic effects of Trump's agenda.
Last month, the central bank lowered its interest rate target to 4.25-4.50% and adjusted its outlook for rate cuts in 2025, exhibiting a cautious stance regarding inflation risks.
Jessica Kline contributed to this report for TROIB News
A senior Federal Reserve official emphasized the inflation risks linked to US President-elect Donald Trump’s forthcoming term in January.
During his speech on Friday, Richmond Fed President Tom Barkin acknowledged that while the US economy might experience considerable growth, there are potential inflationary pressures to consider, especially if hiring and wages rise.
Barkin highlighted several encouraging signs, such as robust consumer spending, minimal job losses, and consistent wage growth. However, he recognized that consumers are starting to resist the escalating prices, indicating a possible turning point in inflation trends.
“How economic policy uncertainty resolves will matter. But, with what we know today, I expect more upside than downside in terms of growth,” Barkin stated. He warned, “more risk on the inflation side” could arise, particularly if the labor market improves.
Though Trump has promised to tackle inflation, there are concerns that if he acts on certain plans regarding tariffs and immigration, a spike in inflation might occur.
In recent years, immigration has played a pivotal role in bolstering the labor force and job creation. In November, Trump pledged to impose 25% tariffs on all goods imported from Mexico and Canada, a strategy that might clash with his campaign commitment to lowering price increases. As noted by recent US Census data, the US is the largest importer of goods globally, with Mexico, China, and Canada listed as the top three suppliers.
Before the election, approximately seven in ten voters expressed significant concern over food prices, according to AP VoteCast. During a September stop at a grocery store in Pennsylvania, Trump assured shoppers that he would work to reduce prices.
Barkin pointed out that plans for higher tariffs generate considerable uncertainty, with some analysts warning that such measures could lead to inflation by raising costs for both businesses and consumers.
The Federal Reserve has begun to revise its policy expectations in light of Trump’s upcoming presidency. Fed Chair Jerome Powell recently indicated that officials are factoring in tentative projections regarding the economic effects of Trump's agenda.
Last month, the central bank lowered its interest rate target to 4.25-4.50% and adjusted its outlook for rate cuts in 2025, exhibiting a cautious stance regarding inflation risks.
Jessica Kline contributed to this report for TROIB News
