Markets keep conflating tariff-induced price shifts with underlying inflation — amateur hour.



Tariffs are a fiscal distortion, a legislated relative price shift, not a monetary phenomenon.

You don’t tighten policy to “fight” a tax; you remove the tax. Monetary policy can’t offset a fiscal levy — nor should it try.

Core pressures have eased, and policy should respond to demand-side conditions, not to transitory, legislated cost-push shocks.

Reacting to a hot, tariff-driven PPI print as if it’s a signal on rates is confusing relative prices with macro inflation.

But sure, let’s pretend import taxes are a reason to rewrite the yield curve.
NOT-3.89%
DON-12%
FIGHT-2.35%
CORE1.32%
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