US and global inflation, partially influenced by US President Donald Trump's tariffs and other policies will again start rising, according to Wolfteam Ltd.'s projections and estimates.
The Federal Reserve has created too much monetary reserves, aka the US central bank has printed too much money, which under tariffs will increase the money velocity and consumer prices will rise.
Inflation will rise, because tariffs essentially create scarcity of goods and services in their essence. Tariffs are a bit of planning the economy or politicians running the economy. Tariffs will create scarcity for computer chips again, which will raise prices of home appliances like refrigerators, microwaves, washing machines etc. and also raise the prices of automobiles, like the last time computer chips were scarce.
Tariffs on farm products and other commodities will increase the prices of commodities like wheat, corn, soy beans, but also oil and gas will rise in prices, in Wolfteam Ltd.'s view.
And after prices rise, the Federal Reserve will raise the Federal Funds Rate.
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