Sep. 17 at 7:24 PM
Q&A:
- Powell says goods inflation for last 25 years has generally been negative; over the past year it's +1.2%, is goods inflation is contributing +0.3 to +0.4ppts to PCE inflation.
- Powell says tariffs are mostly being paid by the companies that sit between exporter & consumer
--- Globalization reduced goods prices over last quarter century - now decoupling + tariffs, goods prices increasing, however, currently, tariffs are mostly getting absorbed by the importers (US companies)
--- IMHO, while importers may be absorbing much of the tariff impact now, the pressure will eventually surface in 1 of 2 ways: eventual higher retail prices for consumers down the road, or a quiet erosion in product value — whether thru reduced quality, smaller package sizes, or cost‑cutting substitutions.
$TLT $SHY $SPY $XLY $GLD