Fed's Quarles: Tariffs Could Trigger Contraction in Both Consumption and Investment

BlockBeats News, April 2nd, Federal Reserve's Bullard stated that if consumers stop spending due to uncertainty, or if businesses pause investment, the economy will be in turmoil. In theory, the impact of tariffs on prices should be temporary, but considering factors such as retaliatory tariffs and intermediate goods duties, the actual impact may be more prolonged.

Bullard emphasized that despite surveys showing that both business and consumer confidence have "nearly tanked," real data still indicates robust economic growth in the United States. He maintained his previous assessment, expecting a rate cut within the next 12 to 18 months. (FXStreet)