MW Fed's Collins says Trump's tariffs, as proposed over weekend, would have 'short-term' impact on inflation

The import tariffs announced by President Trump this weekend would likely cause a short-term boost in inflation, Boston Fed President Susan Collins said on Monday.

In an interview on CNBC, Collins said the tariffs were "broad-based," or placed on such a wide range of goods, that there would be increases in "final" goods prices, but also on intermediate goods used in earlier stages of production.

The Boston Fed president, a voting member of the Fed's interest-rate committee this year, said it was hard to assess the impact of the tariffs and how the Fed might respond. If inflation expectations were steady, one would expect the Fed would try to "look through" the short-term increase in the price level, she said.

"But, of course, there are many factors going on ... and underlying trends in inflation and the economy really matter a lot," she added.

-Greg Robb

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February 03, 2025 11:53 ET (16:53 GMT)

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