"Fed President Warns of Tariff Inflation Impact, Divides Persist on Policy Stance"

St. Louis Federal Reserve president Alberto Musalem predicts inflation will rise due to tariffs, unsure if it’s temporary or long-term. He expects tariffs to reach 8-9% by June, up from 2.5% in April. Divisions within the Fed persist on tariff impact, with some advocating for rate cuts. President Trump pushes for easing monetary policy, believing tariffs won’t cause inflation. Musalem warns of prolonged inflation if tariffs on intermediate goods increase prices for all products. He anticipates data will show tariff impact by September.

Read more at Yahoo Finance: Musalem says too soon to know if tariff inflation will be temporary, reinforcing Fed divide