Fed researchers say tariffs actually lower inflation — because they’re a demand shock that slams employment and economic activity

FortuneSaturday, November 15, 2025 at 8:54:55 PM
Fed researchers say tariffs actually lower inflation — because they’re a demand shock that slams employment and economic activity
Federal researchers have found that tariffs can actually lower inflation. This occurs because tariff shocks function as aggregate demand shocks, which negatively impact employment and economic activity. The findings indicate that both inflation and unemployment move in the same direction as a result of these tariff shocks.
— via World Pulse Now AI Editorial System

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