#Tariffs or Fed rate cuts#

Former Federal Reserve Vice Chair Randal Quarles believes that tariffs could lead to interest rate cuts by the Fed to some extent. He points out that tariffs could negatively impact the US economy, leading to slower economic growth, which in turn would force the Fed to take rate-cutting measures to stimulate the economy. While he expects tariffs to result in a significant number of people being evicted, he believes this will not have a major impact on the US labor market. Quarles believes that the impact of tariffs on the economy is multifaceted, and in addition to potentially leading to rate cuts, could also lead to decreased business investment, reduced consumer spending, and rising inflation. He emphasizes that the economic impact of tariffs needs further observation and evaluation, but for now, the negative impact of tariffs on the US economy cannot be ignored.