Yellen expects Trump's tariffs will hike inflation to 3% year over year

[JT45242]

8. 3% seriously -- that is such an underestimate to not be laughable but to be dangerous

The lowest estimate is 14% of goods are directly imported into the US. If they used 25% of that number you would get around 3.5%.

But so many goods have precursors and intermediate goods that are imported that the numbers is likely much closer to 35% of all goods. Even if yu say that the 20% with at least partial production outside the country represents half the cost. That would be another 2.5% inflation minimum,

That gets you to 6% inflation really fast.

No increase of the interest rate can slow that inflation because companies will not eat those losses and many of these will be essential goods.

Then throw on top of that the supply/demand issues that will come from disrupted supply chains and added costs associated with that and we will see double digit inflation.

And I haven't evene mentioned the skyrocketing cost of foood since frams will have to charge a lot more to overcome the rotting losses of food in the fields because they have no workers.

Went to get OJ the day before yesterday, it was $7 a gallon. Routinely has been $3-4 for years at Walmart.

It is going to get really bad, really fast.