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Scott Lincicome: U.S. tariff hikes drive higher consumer inflation outlook and stall durable purchases
A new paper from the Federal Reserve Bank of Cleveland has found that U.S. tariff hikes and related tariff uncertainty are driving up consumer inflation expectations.
Scott Lincicome highlighted the study, which also shows that this uncertainty strongly discourages consumers from purchasing durable goods, especially cars and other major items. The research suggests that trade policy actions and uncertain outcomes directly influence both inflation outlooks and spending on big-ticket purchases among U.S. consumers.
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