Fed Researchers Say Tariffs Actually Lower Inflation — because They're Demand Shocks that Slam Employment and Economic Activity

'Demand shock' caused by tariffs can lower inflation: Fed researchers

Fed researchers say tariffs actually lower inflation — because they're demand shocks that slam employment and economic activity

"Instead, tariff shocks appear to act as aggregate demand shocks—moving inflation and unemployment in the same directions."

Fed Study Vindicates Trump Trade Policy: 150 Years of Evidence Shows Tariffs Lower Inflation

In a groundbreaking revelation that challenges long-held economic orthodoxies, a recent Federal Reserve study has provided historical validation for President Trump’s aggressive tariff policies. Analyzing 150 years of data from 1870 to 2020 across the United States, the United Kingdom, and France, the research demonstrates that tariff increases not only fail to stoke inflation but actually reduce it while boosting domestic economic resilience. T…