The Fed now faces a genuine dual mandate dilemma for the first time in decades: tariffs may weaken the consumer, but inflation expectations are rising, forcing the Fed to choose between saving the consumer through stimulus (risking inflation) or fighting inflation (risking recession), a trade-off that was obscured for years when disinflationary forces made both goals compatible.

causalpending

Speaker

Richard Bernstein

Evidence Quote

They have to make a choice. Do they want to fuel inflation and maybe save the consumer or do they want to fight inflation and maybe cause a recession? [45:58]

Source

The Colossal Mistake | The Danger of Narrow Markets — Practical Lessons from Richard BernsteinExcess Returns
Created: 8/11/2026, 7:31:42 AM

My Notes

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