Economists Say Tariffs' Impact on Inflation Is Still Unclear

Economists predict that the initial muted impact of tariffs on inflation will likely lead to a significant increase in consumer prices later this summer, as past trade wars and supply chain disruptions suggest a time lag before costs are fully passed on to consumers. The Federal Reserve remains cautious, holding interest rates steady while awaiting clearer economic signals, with some experts expecting inflation to reach around 3% by year's end.