Hold onto your wallets, folks—rising U.S. inflation just got a turbo boost from tariffs, and economist Michael Strain says the worst is yet to come. 🚨 As prices for everyday goods climb faster than TikTok trends, Strain, director of economic policy studies at the American Enterprise Institute, warns that tariffs are fanning the flames of an already overheated economy.
Here’s the tea ☕: Core inflation—which strips out volatile food and energy prices—has been stubbornly above the Federal Reserve’s 2% target. But tariffs on imported goods are now acting like gasoline on a bonfire, driving up costs for everything from electronics to apparel. "The full impact hasn’t even hit yet," Strain says, predicting more price spikes in the coming months.
Think of it like a domino effect 🎲: Tariffs make imported products pricier, which pushes businesses to raise prices or cut costs (hello, shrinkflation!). For young professionals and students already juggling rent and avocado toast budgets, this could mean tighter belts ahead. 💸
Strain’s take? The Fed’s inflation fight just got a lot trickier. With midterm elections looming, this economic plot twist could reshape everything from holiday shopping to 2023 travel plans. ✈️ Stay tuned—we’ll keep you updated as this story develops.
