by Jack Hellner
American Thinker
Jerome Powell says that he needs hard data on the tariffs, and the effect they have on inflation, before he lowers interest rates.
Here is some information that should help if he really cares:
China is massively manipulating its currency to keep its prices down and factories humming to offset the tariffs. Just like in Trump’s first term, China is eating a lot of the tariffs, meaning they would have little effect on inflation in the U.S.
Ford says it is discounting the price of its cars until June. If Ford lowers its prices, the other car companies won’t raise prices much.
Walmart says it will work extremely hard to keep its prices low which means other retailers like Amazon will have to follow.