Tariff escalation with China is a passing thing, says former Fed governor Larry Lindsey

US-China Trade Relations & Tariffs - The market reacted sharply to President Trump's threat of massive new tariffs on China, with the S&P 500 down approximately 2% and the tech sector experiencing a more significant decline [4] - The expert suggests that the tariff issue is not solvable by monetary policy and recommends the Fed to ignore it [5] - China's cut in access to rare earths is viewed as a reason for potential retaliation from the US [4] Monetary Policy & Inflation - The expert believes that the Fed should hold steady and not continue rate cuts, as cutting rates would validate passing on price increases and potentially fuel inflation [8][9] - The expert suggests that the Fed signaling it does not want to validate price increases would put a lid on inflation [8] Labor Market Analysis - The labor market is described as soft but not significantly different from what is expected in an extended expansion [10] - Wages for lower-end workers are performing well, while supervisory workers have experienced lower pay increases [10][11] - The Atlanta Fed wage tracker signals no serious problems in the labor market [11] Personal Considerations - The individual withdrew his name from consideration for a government position due to personal considerations, including family involvement and satisfaction with his current job [1][2][3] - The expert finds government service to be more painful and hostile than in the past [2]