Chief Economist Predicts Tariff Inflation Won’t Last, Foresees Three Rate Cuts 📈📉

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Oh, the thrill of economic predictions! David Mericle, the chief US economist at Goldman Sachs, has decided to sprinkle some optimism into our lives. He’s telling everyone who’ll listen (and some who won’t) that President Trump’s tariffs aren’t going to send us spiraling into an endless pit of inflation. 🙌

In a recent chat with CNBC, Mericle, looking as dapper as ever, predicts that the Fed will be cutting rates three times this year, starting as early as September. Apparently, the tariffs are only giving us a little “boost” in inflation, which, according to him, is totally manageable. 🚀

“The latest data shows that the stakes aren’t as high as we thought. The economy and the labor market are doing just fine, thank you very much. Inflation is moving back towards 2%, and the tariffs? Well, they’re just a tiny blip on the radar. So, we’ve got three rate cuts penciled in for later this year, starting in September. I’m feeling pretty good about it!”

“We’re seeing the end of catch-up inflation, and I’m not losing any sleep over tariffs unanchoring inflation expectations. They might show up in the data from month to month, but they’re not going to cause a long-term problem. It’s like a little hiccup in the grand scheme of things.”

And here’s the kicker: Mericle thinks the impact of tariffs will be short-lived because the economic conditions, especially in the labor market, are way different from what they were a few years back. 🤔

“Back in 2022, we were all worried about labor market tightness and soaring inflation. But now, the economy isn’t facing the same pressures. So, the tariffs might give us a little bump, but they’re not going to send us into a prolonged period of high inflation. It’s all good!”

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2025-07-19 12:22