February 14, 2025
Which Interest Rate Should You Care About?
January’s Surveys of Consumers found expectations for future inflation increased, reflecting growing concerns about tariffs Trump has promised. The New York Times quotes SCA’s director, Joanne Hsu: “These consumers generally report that tariff hikes will pass through to consumers in the form of higher prices. Recent data show an emergence of inflationary psychology — motives for buying-in-advance to avoid future price increases, the proliferation of which would generate further momentum for inflation.”