Two economists who are figuring in prominently for vacancies at the Federal Reserve said Tuesday they don’t believe tariffs cause inflation, a view that would be in line with President Donald Trump’s desire for the central bank to cut interest rates.
In separate CNBC interviews, Stephen Miran and James Bullard rejected the idea espoused by many non-White House economists that the duties will lead to longer-term higher prices.
Trump has tapped Miran to fill out the remaining few months of the term of former Governor Adriana Kugler, who left the position Friday. Bullard’s name has surfaced in reports this week as being one of at least a half dozen contenders to fill Chair Jerome Powell’s seat when his term expires next May. Bullard also is a former St. Louis Fed president.
Both did not commit to how they would vote on interest rates. However, they praised Trump’s pro-growth agenda and also made comments in line with the president’s stand that inflation is not a problem.
“There just still continues to be no evidence whatsoever of any tariff-induced inflation,” said Miran, chair of the White House Council of Economic Advisers. “Lots of folks who were expecting ... doom and gloom, it just hasn’t panned out, and it continues to not pan out for them.”
