Elena Nikulina

Claudia Sahm: Fed rate hikes driven by tariffs and Iran policy

Claudia Sahm: Fed rate hikes driven by tariffs and Iran policy
Fed hikes connected to tariffs, Iran

Claudia Sahm raises concerns about the Federal Reserve's approach to interest rate hikes, questioning why increases are needed if core inflation is at 2%.

Sahm argues that current inflation is not solely a result of economic data, but is influenced by White House policy choices such as tariffs and conflict with Iran. She suggests that if serving as National Economic Council director, her focus would be on addressing these policy drivers instead of monetary policy alone.

Sahm previously highlighted that persistent inflation risks could stem from energy prices and tariffs, raising the possibility of a rate increase at the Federal Reserve’s next meeting, according to her analysis in Fed faces energy and tariff risks on inflation. She also addressed the growing importance of financial innovation for payments and policy at the 2026 Jackson Hole Symposium. These discussions reflect Sahm’s ongoing focus on both policy and structural factors driving economic outcomes.

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