Trump tariffs fueling inflation: congressional budget chief
Congress Budget Office Director Phillip Swagel said on Monday that President Donald Trump’s tariffs inflation increased more than CBO analysts at the beginning.
His views are different from the Wall Street analysts who support many of them for tariff -guided price increases, but they do not see yet in the realization.
Speaking at the CNBC’s “Squawk Box”, Swagel said CBO analysis has shown that the economy has been weakened since January and expects to make downward pressure on inflation.
Swagel also shared his long -term view of his office about the impact of Trump’s tariffs: CBO expects taxes to reduce the US budget deficit in federal crates in the next decade.
“So 3.3 trillion dollars in income and then $ 700 billion -paced debt cost,” he said. He continued: “According to this, it will be reversed.”
Trump’s tariffs face an uncertain future. The Supreme Court began to hear verbal arguments in early November after objection to the sub -court decisions that found that the Trump administration exceeded the authority of the President.
Swagel said the result of the Supreme Court Tariff case is “one of the main uncertainties in the economy”.
However, according to CBOs, this uncertainty is likely to disappear over time. the last report.
“The effects of policy uncertainty are dispersed over time and disappear until the end of 2027 and returns investments without the uncertainty in investment policy,” September CBO analysis said. He said.
