PRESIDENT DONALD TRUMP CLAIMS , WE DONT HAVE INFLATION , AND TARIFFS DONT CAUSE INFLATION , BUT A NEW REPORT STRONGLY DISAGREES

What happened: President Donald Trump said "we don't have inflation, and tariffs don't cause inflation," while a New York Fed report found tariffs raised goods prices. Key numbers: NY Fed economists found tariffs added 2.9 percentage points to goods price inflation by February 2026; each 1 point of tariff increase added a quarter Why it matters: The report says goods prices would have fallen slightly without tariffs. Elevated inflation could upend the bull market if the Federal Reserve gets more aggressive with rate hikes and higher borrowing costs slow the AI infrastructure build-out.

President Donald Trump said "we don't have inflation, and tariffs don't cause inflation," while a New York Fed report found tariffs raised goods prices.

The report says goods prices would have fallen slightly without tariffs. Elevated inflation could upend the bull market if the Federal Reserve gets more aggressive with rate hikes and higher borrowing costs slow the AI infrastructure build-out.