"A sweeping new analysis of tariff policy spanning 150 years suggests that the economic establishment may have fundamentally misunderstood how tariffs affect prices and employment, a finding with profound implications for understanding President Donald Trump’s trade policy and the proper response by the Federal Reserve." . . .
"Using a standard economic model, researchers estimated the effect of tariff shocks on inflation and unemployment. A roughly 4 percentage point increase in average tariffs lowered inflation by about 2 percentage points while raising unemployment by about 1 percentage point, they found."
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