#GENIUSActPass Richard Clarida, former Vice Chairman of the Federal Reserve and current advisor at PIMCO, has expressed concerns over the ongoing inflationary pressures in the United States. Despite a better-than-expected performance at the beginning of the year, inflation is anticipated to face significant challenges due to early stockpiling and cumulative tariff impacts.

Clarida highlighted that the average effective tariff rate in the U.S. rose to 15.6% in June, marking the highest level since 1937. This increase could potentially drive inflation above 3%. He questioned whether the Federal Reserve would maintain its forecast of two interest rate cuts within the year.