I find it interesting that the Fed is worried about price
inflation from tarrifs. Wouldn't that reduce demand,
resulting in a weaker econcomy? That would make the case to
lower rates IMO. I don't see how higher prices would raise
demand causing prices to rise even further they way they did during
the post-covid free money dump. Ultimately, resolution of the
coil on the TNX weekly chart will likely set the next trend in
rates.
PS, long time member, your work here is wonderful, thank
you!
Posted by kingpin15 on 2nd of Jul 2025 at 09:46 am
Consumer Behavior:If buyers respond to price
increases by cutting back, demand drops. This is common with
price-sensitive goods like electronics or apparel.
but
Broad Impact:If tariffs affect widely used goods
or inputs (like steel or oil), the price hike ripples through the
economy.
Producer Pass-Through:Businesses often pass those
higher costs onto consumers, inflating prices.
Sticky Demand:If demand doesn’t drop
significantly, you may get sustained inflation—especially if wages
rise to keep pace.
You often see
both effects simultaneously:
Prices go up →
Inflation ticks upward
Consumers react →
Demand softens
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I find it interesting that
US private payrolls unexpectedly decrease in June; layoffs remain lowByReuters•6 ...
Posted by jared95 on 2nd of Jul 2025 at 09:21 am
I find it interesting that the Fed is worried about price inflation from tarrifs. Wouldn't that reduce demand, resulting in a weaker econcomy? That would make the case to lower rates IMO. I don't see how higher prices would raise demand causing prices to rise even further they way they did during the post-covid free money dump. Ultimately, resolution of the coil on the TNX weekly chart will likely set the next trend in rates.
PS, long time member, your work here is wonderful, thank you!
thanks a lot jared95!
Posted by matt on 2nd of Jul 2025 at 09:55 am
thanks a lot jared95!
Consumer Behavior:If buyers respond to
Posted by kingpin15 on 2nd of Jul 2025 at 09:46 am
You often see both effects simultaneously: