On July 22, 2025, Marlo Ramirez will be prepared for a customer in a grocery store for a customer in Miami, Florida.
Joe Raedle | Getty pictures
Two economists that prominently imagined in the Federal Reserve in the Federal Reserve said on Tuesday that they do not believe that tariffs cause inflation, a view that would correspond to President Donald Trump's wish to reduce interest rates.
In separate CNBC interviews, Stephen Miran and James Bullard rejected the idea represented by many non-white housekeeping that the tasks would lead to long-term prices.
Trump tapped Miran to fill out the remaining months of the term of office of the former governor Adriana Kugler, who left the position on Friday. This week Bullard's name appeared in reports as one of at least half a dozen competitors who fills the seat of chair Jerome Powell when his term of office runs next May. Bullard is also a former president of St. Louis Fed.
Both have not committed to how they would vote on interest rates. However, they praised Trump's high -growth agenda and also made comments in accordance with the state of the president that inflation is not a problem.
“There is still no evidence of an inflation caused by tariff,” said Miran, Chairman of the White House Economic Council. “Many people who expected … fate and darkness, it just didn't go out, and it will still not be taken out for them.”
The comments came after the Bureau of Labor Statistics reported that inflation was 2.7% for July, measured by the consumer price index and still above the 2% goal of the Fed, but a shadow under the expectations of Wall Street.
According to Bullard, data continues to show that Trump's aggressive tariffs have not led to inflation. He predicted that the Open Market Committee of the interest rate would begin in September and would probably lose a full percentage point from its benchmark interest rate in the next 12 months from the name.
“The committee initiated its tariff-cut program on a break when the tariff situation appeared six months ago, and now they have had six months,” he said. “I do not think that tariffs cause inflation. Tax does not cause inflation. What you see in the data are very subdued effects that are one -time increases in the price level.”
Both Miran and Bullard also emphasized the importance of the Fed independence, a topic that was tested in both Trump terms because he publicly and aggressively insulted the political decision -makers because he was not reduced. After the CPI data, Trump again took the truth to repeat his attacks on Powell and his demand for relaxation. The President said the Fed should be reduced by 3 percentage points.
“The damage [Powell] It is uncalculated to always be too late, “wrote Trump.
Bullard said Trump “is entitled to his views.”
“He has many years of experience in the real estate markets. It is about lending money at the lowest possible price,” said Bullard. “Good for him. He has views, but many people have views, and they know that if they don't want to hear that, this is probably the wrong job.”
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