Janet Yellen on the impact of tariffs: The biggest risks are now diminished

Inflation & Tariffs Impact - Tariffs are expected to push year-over-year inflation to at least 3% [1] - Tariffs are estimated to reduce the average household income by approximately $1,000 [1] - Substantial price hikes due to tariffs pose a recession risk as consumers may reduce spending [2] Economic Outlook - Reduced risks associated with prohibitive tariffs on China have improved consumer confidence [2][3] - Pause of reciprocal tariffs has diminished some of the biggest risks [2]