On March 20th, Federal Reserve Chairman Powell stated that the base inflation rate before the implementation of tariffs was basically 2.5%. The inflation rate is still running at a level above 2% and has increased due to the impact of tariffs. Federal Reserve staff have a simulated forecast of the impact of tariffs, which assumes that the United States will be subject to comprehensive tariff retaliation. And expressed that there is no need to worry about a repeat of the situation in the 1970s.
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