After rate hike, economists weigh tariffs’ role in inflation

CEI’s Senior Economist Ryan Young was quoted by Center Square in their analysis of tariffs impact in inflation.

Ryan Young, senior economist at the Competitive Enterprise Institute, suggested the Fed’s path forward could largely depend on the Trump administration’s next steps on several key issues.

“The answer is not necessarily in the Fed’s hands. Upcoming policy choices on Iran, Canada, and tariffs will play a large role,” he said in a statement shared with The Center Square.

Young said that ending the conflict in Iran, ending the trade war with Canada, and either ending or reducing other existing tariffs according to a predictable schedule would all ultimately lower prices for Americans.

“Credibly ending the Iran war,” according to Young, would lower energy prices, though the come-down would be gradual. The car and construction industries would benefit from cheaper Canadian steel and lumber, while reducing or eliminating tariffs would relieve another source of upward pressure on prices.

Congress passed a Russia sanctions bill Wednesday that gives the president more authority over tariffs.

Read the full article at Center Square.