Diane Swonk

But that assumes that the tariffs occur all at once.

Of course, they've been moved out in waves.

And it also assumes they don't come on the heels.

of a pandemic induced inflation that's persisted for nearly five years now and so the debate at the fed is some people saying listen this should be over soon we'll get through it and we can sort of look through it a bit and try to stimulate the labor market in the interim between those people who are worried that maybe this is a more entrenched bout of inflation that isn't as easily um sort of resolving on itself and that's the heart of this sort of very intense debate we see within the fed

Well, there's oftentimes what we call opportunistic pricing, and that is areas that are protected by tariffs.

Even if they're not specifically feeling tariffs, they can raise their prices, too.

We saw that back in the trade war with China, where

you know, the price of washers were tariffed, the price of dryers were not, yet they both went up by the same amount because they tend to be sold together.

And so we know that there is contagion from tariffs as well.

We also know that tariffs actually feed into service sector prices, a lot of medical equipment and, you know, personal protection equipment that was so important during the pandemic.

A lot of that is heavily tariffed at the moment.