Chris Waller, a board member of the Federal Reserve, recently issued a strong warning, stating that the current tariff policy in the U.S. will become the 'culprit' for driving up domestic inflation, and its impact on price increases may peak in the second half of this year. This statement has attracted widespread attention from the market and the economic community.
Waller emphasized that there is significant uncertainty in U.S. trade policy, and the continuously increasing tariffs are having serious negative impacts on the economy. On one hand, higher tariffs lead to rising prices of imported goods, which then translates to the domestic consumer market, pushing prices up. On the other hand, frequent changes in tariff policies suppress consumer spending and severely disrupt business operations.
The latest data released by the U.S. Department of Commerce shows that personal consumption expenditures in the U.S. increased only 0.2% month-on-month in April, far below the 0.7% increase in March. Behind this slowdown is the increased economic uncertainty brought about by changes in tariff policies. U.S. media have pointed out that consumers are worried about the future economic situation, leading to a reduction in unnecessary consumption expenditures, which poses a direct threat to economic growth.
Waller's viewpoint has resonated with economists. Many experts believe that the U.S. government's trade protectionist policies have not only failed to achieve their expected economic goals but have also severely backfired on the domestic economy. As tariff policies continue to ferment, U.S. inflation rates may rise further, and economic growth could stagnate.
In this context, the U.S. government needs to reassess its trade policies to avoid long-term negative impacts on the domestic economy due to short-sighted actions. Otherwise, the U.S. economy may face an 'inflation storm' triggered by its own policies, leading to a significant increase in living costs for ordinary people.
This event not only poses challenges to the U.S. domestic economy but also has profound effects on the global economic landscape. The international community is calling for the U.S. to quickly return to rational and cooperative trade policies to maintain global economic stability and prosperity.
