Breitbart Business Digest: The Fed Goes to War on Tariffs

The Fed Ignores Falling Inflation, Raises Alarm Bell Over Tariffs

The Federal Reserve announced definitively on Wednesday that President Trump’s tariff policies are forcing a more aggressive stance on inflation. Despite recent signs of cooling, the central bank opted to hold rates steady but raised its inflation outlook sharply—and warned that rate cuts remain unlikely until concrete tariff-driven price pressures materialize.

Inflation is clearly slowing. Over the past three months, headline PCE—the Fed’s preferred measure—has annualized at around 1.6 percent, while core PCE (excluding food and energy) tracks at roughly 2.2 percent. On a year-over-year basis, headline PCE weighed in at 2.1 percent in April, and core PCE came back to 2.8 percent, down from peaks near 3.7 percent last summer. CPI has

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