If tariff inflation does not show up in core inflation data as the Fed expects (due to the Fed's theoretical framework), the Fed may be forced to 'walk back' its position or provide forward guidance about inflation expectations, but will likely not raise rates despite inflation, in order to avoid administering economic shocks.
forecastpending
Speaker
Lobo TiggreEvidence Quote
“they can't just suddenly raise rates...they will need to start guiding...well, we do have this sudden burst of inflation. It's all Trump's fault”
Created: 8/11/2026, 6:44:11 AM
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