Inflation appeared hotter than economists previously expected in January, according to the month's Consumer Price Index (CPI) data. Between elevated prices and inflation woes, how long could it take for President Trump's trade tariffs to materialize in consumer goods?
Moody's Analytics chief economist Mark Zandi sits down with Seana Smith and Brad Smith on the Morning Brief to describe how American consumers have gone through "inflation hell" in recent years.
"And [they're]... very sensitive to it. So if they feel like the tariffs are going to start to raise prices, and it shows up in inflation expectations, that by itself could be enough to certainly have an impact on on monetary policy, wage demands, and inflation itself," Zandi tells Yahoo Finance, turning his attention to the Federal Reserve's part in this.
While Zandi stipulates that the "real damage" from the Trump administration's tariff policies and mass deportation plans is still yet to be seen, the economist says the president's immigration agenda may put pressure on portions of the labor market and have a ripple effect in raising costs of living further down the line.
Related Videos
Catch Mark Zandi also explain why he believes disinflationary trends "may now be coming to an end" in 2025.
To watch more expert insights and analysis on the latest market action, check out more Morning Brief here.
This post was written by Luke Carberry Mogan.