FEDWATCH: With reciprocal tariffs “hanging in the balance, the Administration will shift more levies to 301/232, thereby sustaining the impact on PCE and likely increasing the tariff pass-through, which could lift core [inflation] .. well above 3 percent .. bonds are likely to react negatively ..”
Core inflation will be 4% plus by end of year if this madness persist. 4 years at Oxford tells me that…
I don’t understand what Carl is saying. Could someone take pity and explain? The shifting of levies and the numbers after that are Greek to me. Also who is he pissed at today aka who’s getting the reciprocal tariffs this time!
The numbers refer to the laws that are being used to justify the tariffs. Since an appeals court has stated that we are, unsurprisingly, not in an economic emergency w.r.t. most of the tariffed goods that rules out Trump's favorite claim. So they will now be justified with some other excuse.
Thank you so much. Hubby is a mathematician, so understood formula (kinda) but we have not the underlying understanding. Thank you!
PCE = personal consumption expenditures... index
Thanks!
Same 🙋🏼♀️