05-11-2025 15:04
Bank of America identifies Trump’s tariffs as key inflation catalyst
Bank of America has decided to reveal who is truly responsible for the steady increase in prices across the United States, which seem to be racing to catch up with their own dollar value in the stock market. It turns out that Trump’s extensive tariffs are not merely fees. They serve as a significant inflationary force, pushing prices for household goods and services to new heights.
According to BofA economists, these tariffs have contributed as much as 50 basis points to the core inflation index—the Personal Consumption Expenditures (PCE) price index. Meanwhile, consumers are currently absorbing 50–70% of these costs, effectively creating a kind of "tax" on the desire to eat.
The bank's experts warn that companies are still passing these expenses onto consumers rather than absorbing them, and if this trend continues, we can expect even more pronounced price increases. However, it seems that Congress is not overly concerned, as the Federal Reserve has largely kept interest rates unchanged, acting as if everything is fine, viewing inflation merely as a public relations issue.
Jeffrey Schmid, the president of the Federal Reserve Bank of Kansas City, is making decisions based on inflationary concerns rather than actual economic indicators. This is how the US conducts its economic policy: quietly taking risks amidst the surrounding noise.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
Published 05 November 2025
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