Fed BOMBSHELL: 150 years of data shatters Dems tariff talking points

Core Viewpoint - A new Federal Reserve study suggests that tariffs may actually lower inflation by reducing demand, causing unemployment, and slowing economic activity, contradicting the establishment's narrative that tariffs are inflationary [1][4][9]. Economic Impact of Tariffs - The study indicates that tariffs lead to a one-time price adjustment rather than an ongoing inflationary spiral, as inflation is defined by continuous price increases rather than singular adjustments [4][5]. - Tariffs can raise prices, leading to decreased consumption and slower economic activity, which may not necessarily result in inflation [8][9]. - The political narrative surrounding tariffs has shifted, with some parties attributing inflationary pressures to tariffs as a means to project blame onto previous administrations [6][14]. Consumption Trends - Current data does not show evidence of reduced consumer spending, with consumers remaining active despite tariff impacts [12][15]. - The perception of a tariff-induced recession is argued to be a political strategy rather than a reflection of economic reality, as GDP growth has been relatively strong [14][15]. Strategic Considerations - While tariffs may have negative economic effects, they could serve strategic purposes in trade relationships, particularly with countries like China [8]. - The discussion around tariffs and their economic implications has been influenced by political agendas, affecting how economic data is interpreted and communicated [14][15].