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![stevehou0 Avatar](https://lunarcrush.com/gi/w:24/cr:twitter::803639496386355200.png) Steve Hou [@stevehou0](/creator/twitter/stevehou0) on x 30.6K followers
Created: 2025-06-25 18:50:06 UTC

New paper argues that not only should the Fed "look through" tariff inflation, it should optimally ease to counteract the recessionary impact of tariffs, which "reduce inefficiently private incentives to consume imported goods""

I've not read the paper in details yet, but my first question is if this advice is conditional in the macro condition in which tariffs are being applied.


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**Related Topics**
[macro](/topic/macro)
[economic downturn](/topic/economic-downturn)
[inflation](/topic/inflation)
[tariffs](/topic/tariffs)
[fed](/topic/fed)
[federal reserve](/topic/federal-reserve)

[Post Link](https://x.com/stevehou0/status/1937946420104827163)