Trump argued with Goldman Sachs after they said his tariffs are making prices go up and creating inflation. But the latest numbers from the government show prices are rising anyway. In July, inflation went over 3% for the first time in months. Goldman says this is happening because companies are starting to raise prices to cover the higher tariff costs. That means the things we buy every day, like clothes, food, or electronics, are starting to cost more and this could continue if tariffs stay in place.
Other big banks like UBS, JPMorgan, and Oxford Economics, also say the same thing. They believe tariffs are already pushing up prices and could keep rising through the rest of the year. Some think inflation could reach almost 4% by the end of 2025, which is much higher than the 2.4% it might have been without tariffs. This means bills could keep getting more expensive and leave people with less money to spend on other things. The Federal Reserve is still expected to cut interest rates later this year because the job market is weakening, and some believe inflation from tariffs won’t last forever. Still higher prices could slow the economy and hurt consumers.
I found this very interesting because it is not always often that a bank would come out and pretty much say what trump is doing is wrong because that his who he tries to support. I do believe that his tariffs could be having an affect on prices and will love to see if he changes anything. I will live to look at all the price changes we have seen in good over the past couple of months.
ReplyDeleteit’s pretty surprising how even with the Fed planning rate cuts, prices might still keep climbing because of these tariffs. Everyday stuff getting more expensive hits everyone, so it’s no surprise economists are sounding the alarm. If inflation really does hit 4%, it’s going to be a tough end of the year for a lot of people.
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