Analysis: Trump's tariff trade conflict will increase the difficulty of the Federal Reserve's work and threaten efforts to combat inflation

BlockBeats News: On April 14th, Trump's tariffs pushing up consumer prices in the United States are bad news for the Federal Reserve's anti inflation actions, but they are more likely to open a Pandora's box: economists point out that the expectations of businesses and workers for prices are often self fulfilling. Ignoring expectations, talking about temporary issues, and pretending that problems do not exist are all unacceptable. The most important asset of the Federal Reserve is its credibility, which is reflected in stable long-term inflation expectations Boston Fed President Collins said last Friday. She also warned that the impact of tariffs may be more widespread than most people imagine. Before Trump announced the tariffs this month, the Federal Reserve had lowered its growth expectations and raised its inflation forecast. Subsequently, several officials warned that inflation could reach 4% this year, giving policy makers a reason to postpone interest rate cuts even as concerns about an economic slowdown intensify. Trump's comprehensive tariffs may transform a one-time price shock into sustained inflationary pressure, threatening the Federal Reserve's 2% inflation target. The latest data shows that long-term inflation expectations have risen to a 30-year high, and consumers expect future price increases of 6.7%, with a 5-10 year expectation of 4.4%. American households have not yet recovered from the soaring prices after the pandemic, and public trust in the Federal Reserve is facing a test.