BNY: Tariff Pass-Through Sustains Inflation Pressure, Impacting USD and Fed
A BNY report citing the New York Fed's Liberty Street Economics analysis indicates that many US firms still plan tariff-related price increases, keeping inflation pressures persistent, which has implications for the US dollar and Federal Reserve policy.
BNY's Geoff Yu reported that the New York Fed's latest Liberty Street Economics analysis warns that many US companies continue to plan tariff-related price increases. This suggests that inflation pressures remain persistent, with potential consequences for the US dollar and the Federal Reserve's monetary policy stance.
The analysis highlights that tariff pass-through effects are not fading, keeping upward pressure on prices. Traders and analysts will monitor how this influences the Fed's rate decisions and the broader FX market.
Source: FXStreet Forex News