Tariffs may have 'slammed shut' the window for interest rate cuts in 2025, economist says
NBC
Feb. 3, 2025, 3:16 PM EST / Source: CNBC
By Greg Iacurci, CNBC
Tariffs set to take effect Tuesday may mean consumers won’t get a reprieve from high borrowing costs this year, according to economists.
President Donald Trump signed orders on Saturday to impose tariffs on the three largest trading partners with the U.S.: 25% tariffs on imports from Canada and Mexico, and a 10% tariff on China.
Economists expect such tariffs — if implemented and kept in place — to raise prices for U.S. consumers.
That upward pressure on inflation — at a time when it hasn’t yet fallen back to target — may push the Federal Reserve to pause its campaign to lower interest rates for the foreseeable future, economists said.
https://www.nbcnews.com/business/economy/tariffs-may-slammed-shut-window-interest-rate-cuts-2025-economist-says-rcna190504