Fed Survey Warns: Tariffs to Jack Up Prices 1.6%—Main Street Foots the Bill

Another day, another stealth tax on consumers—courtesy of Washington's favorite economic blunt instrument.

The Fed's latest numbers don't lie: that 1.6% price surge isn't some abstract forecast. It's coming straight for your wallet while lobbyists toast with champagne.

Pro tip: When traditional finance starts shooting itself in the foot, smart money hedges with decentralized alternatives. Just saying.

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Firms Expected to Pass on Half of Tariff Cost Increase to Customers

The Atlanta Fed also conducted a survey asking businesses the percentage of cost increases that they would pass on to consumers given increases of 10% and 25%. On average, firms expect to be able to pass on 51.1% of a 10% jump in cost and 47.3% of a 25% jump in cost without affecting demand.

The study points to tariffs driving upward pressure on retail goods, which could result in a jump in inflation, further pressuring the Fed to keep rates unchanged or increase them. That could create pressure for the stock market, as higher rates result in a higher cost of borrowing for corporations.

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