Part 3/12:
The recent increase in inflation is perceived as a consequence of multiple factors, notably global supply chain disruptions, tariffs, and potential attempts by policymakers to stimulate the economy artificially. Some analysts argue that the current inflation trends are partly driven by tariffs, which raise costs across various sectors.
In response, some within the administration appear to advocate for lowering interest rates, aiming to boost economic activity. However, experts warn that such policies risk overheating the economy and exacerbating inflation, which could undermine long-term stability. The Federal Reserve's role is to balance these concerns, maintaining independence to make data-driven decisions freed from political pressure.
The Demise of Political Interference