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Trump's border tax could trigger inflation, but don't expect an immediate reaction from the Fed
Economists are worried that Donald Trump's plan to introduce a so-called border tax on imports could cause a spike in inflation, and rightly so. The logic here is simple: Lots of goods consumed in the US are made overseas, from Mexico to China. Companies aren't going to eat the tariffs Trump wants to slap on these — and so they'll pass on the higher costs to consumers instead. But the run-up in prices may not be as sweeping as some expect. It'll apply only in select industries and could be temporary. Those expectations for inflation did push Treasury bond yields higher (reflecting expectations that interest rates ... (full story)
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