Economists, Governors Raise Alarm Over Tariff Impacts at Dallas Summit

A recent summit hosted by the Federal Reserve Bank of Dallas and the Peterson Institute for International Economics focused on the economic implications of ongoing tariffs, particularly the 90-day pause on tariffs for most countries, excluding China. Leading economists expressed concerns that higher tariffs could lead to increased unemployment and inflation, with former Treasury Secretary Janet Yellen labeling the tariff war as a severe self-inflicted wound on the economy. Chicago Fed President Austan Goolsbee warned about potential stagflation, emphasizing the negative effects of tariffs on supply and economic growth, although he noted that current data does not indicate stagflation. Meanwhile, North Carolina Governor Josh Stein highlighted the impact of tariffs on local businesses and reconstruction efforts following natural disasters, urging the federal government to reconsider its trade policies. The uncertainty surrounding tariffs is also causing anxiety among consumers and businesses alike, with reports of increased prices and diminished spending confidence. Overall, the discussions underscored the complex interplay between trade policy and its direct effects on the economy and consumer behavior.