📉 Federal Reserve Faces Internal Debate Over Tariff Risks Amid Economic Concerns

The Federal Reserve is grappling with internal disagreements on how rising tariffs might impact the U.S. economy. As trade tensions escalate and protectionist measures gain traction, policymakers are split on whether tariffs could reignite inflation or dampen already fragile growth.

Some Fed officials warn that higher import costs could feed into consumer prices, complicating the central bank’s path on interest rates. Others argue that slowing global demand might outweigh these pressures, leading to subdued economic activity.

This debate underscores the delicate balancing act the Fed faces: fighting inflation without derailing growth. With businesses and markets closely watching, the stakes couldn’t be higher.

💬 What’s your take? Will tariffs be a bigger threat to inflation or to growth?

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