Former Fed Chair Sees 'Modest' Inflation Impact from Trump Plans

Former Fed Chair Ben Bernanke suggests Trump’s economic policies won’t dramatically shift inflation trends, noting that the 2017 tax cuts are already largely in place. While import tariffs and immigration restrictions could create challenges in sectors like construction and agriculture, their broader economic impact should be limited. The Fed’s response to these policies remains uncertain, particularly regarding tariffs which can both reduce output and raise inflation. Other economists, including Christina Romer and Jason Furman, agree the impact will be modest, though even small changes could influence Fed policy decisions. Bernanke emphasizes that the Fed must now focus on securing public and congressional support while maintaining its independence to manage inflation effectively.



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