Economics

Tariffs create a no-win situation by simultaneously slowing growth AND increasing prices. Put simply, the Fed cannot counter these effects without either worsening inflation or further dampening economic growth.

This leaves us facing a troubling scenario:

1. If the Fed reduces its balance sheet by letting bonds mature without replacement or selling Treasuries/securities, this tightens financial conditions when the economy is already vulnerable.

2. If the Fed raises the federal funds rate, borrowing costs increase across the board, potentially crushing growth when the economy is already decelerating.

Regardless of which path is chosen, increased market volatility seems inevitable. Crypto may actually become relatively more stable, and with inflation, crypto prices rise accordingly.​​​​​​​​​​​​​​​​.

Goldman Sachs confirms reality. Fed still isn’t going to cut rates and worsen inflation. This is not good..

Goldman Sachs confirms reality. Fed still isn’t going to cut rates and worsen inflation. This is not good..

https://www.cnbc.com/2025/03/30/tariffs-to-spike-inflation-stunt-growth-and-raise-recession-risks-goldman-says-.html

👨🏻‍🍳 Better cook than I look 👨🏻‍🍳 
🧪 Dada scientist 🧪 
📐 Student of design 📐 
👾 👾 👾 👾 👾 

 /ai-art

Felt like those opinions mattered once upon a time. Sadly I don’t think it will help much this go around.

Yes but there are a lot of people who have different opinions about it 

/s

At this point, America experiencing rapid inflation is a good thing for most of the rest of the world as it’s a way for the average voter to associate tariffs=inflation.