๐Ÿ“ฐ News Alert...

๐Ÿ”– Title: Powell Under Siege as Fed Conference Kicks Off Amid Political Pressure

๐Ÿ—“๏ธ Published: 2025-07-22T16:00:00.000Z

๐Ÿ“„ Summary: Federal Reserve Chair Jerome Powell is encountering mounting pressure as the Fedโ€™s banking regulation conference begins this week. Amid calls from former President Donald Trump to cut interest rates and threats of dismissal, the Fed remains cautious in adjusting monetary policy due to rising inflation fueled by tariffs. The ongoing political tensions and looming questions about Powellโ€™s potential successors highlight the fragile balance the Fed is striving to maintain in a complex economic environment.

๐Ÿ”— https://thehill.com/business/5411992-powell-under-siege-as-fed-conference-kicks-off/

๐Ÿ—ž๏ธ Source: Tobias Burns

๐Ÿ’“ #FederalReserve #MonetaryPolicy #EconomicStability

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Discussion

The reason tariffs are not inflationary is that the goods which face increased costs and are sold at a higher price, that is a direct source of increased demand for money. If these firms and those affected by no longer spending at them have additional money to spend elsewhere, that is an increase in the supply of money for other goods, and it is unlikely to surpass the effect of the increased demand for money elsewhere. The other thing is that tariffs make planning difficult, which in a more general way across the economy and especially in production, increases the demand for money and lowers its supply (money being a way people handle uncertainty).

So really tariffs artificially shift around economy and increase costs, but do not cause any significant inflation on their own. This narrative of causing inflation comes from a lack of understanding of money and propaganda to control the narrative and diffuse blame for monetary debasement.

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