Federal Reserve's Quarles: Tariff Implementation Far Exceeded Model Predictions, Not Yet Clear How to Address Negative Supply Shock

Blockbeats
04-09

BlockBeats News, April 9th, Chicago Fed President Evans stated that the implementation of tariffs has far exceeded previous model predictions. The Fed must take a longer-term view of the issue rather than reacting to the stock market's volatility.

There is internal Fed disagreement on how quickly or to what extent the tariff increases will be passed on to consumers, which could lead to supplier bankruptcies. It is still unclear how the Fed will respond to the negative supply shock. (Xinhua News)

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