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Posted (edited)
12 minutes ago, Coelenterate Fuccboi said:

From today: 

“Fed Chair Jerome Powell said President Donald Trump's tariffs have mainly appeared to be covered by importing companies, meaning consumers haven't seen major price increases tied to the levies yet.

"To the consumer, the passthrough has been pretty small," Powell said. "It's been ... slower and smaller than we thought."

To be sure, Powell noted that companies have said they eventually plan to pass more of the cost increases onto shoppers, which can result in higher price tags.”

With the discontent between him and Trump, there’s no telling how much truth or justification for past action (inaction) there was in this this statement, but it does confirm one side of this argument so far. 

Pass through costs are just starting.  Here is just one example: coffee. 

https://dailycoffeenews.com/2025/09/15/u-s-coffee-prices-soar-at-the-supermarket/

why has it taken awhile? Mainly, Trump has been starting and stopping tariffs for months. Then, companies tried to do a temporary coverage of the tariffs hoping they would stop. Finally, it takes awhile to burn thru inventory.  Declaring victory over tariff inflation is very premature.  

However, declining demand from a worsening economy can also mute inflation.  Not the right way, but a way  

 

Edited by Dbeasy
Posted
51 minutes ago, Dbeasy said:

Pass through costs are just starting.  Here is just one example: coffee. 

https://dailycoffeenews.com/2025/09/15/u-s-coffee-prices-soar-at-the-supermarket/

why has it taken awhile? Mainly, Trump has been starting and stopping tariffs for months. Then, companies tried to do a temporary coverage of the tariffs hoping they would stop. Finally, it takes awhile to burn thru inventory.  Declaring victory over tariff inflation is very premature.  

However, declining demand from a worsening economy can also mute inflation.  Not the right way, but a way  

 

I have no doubt companies will eventually want to do make-up hikes. The market will determine if they are able to.

Coffee may not be the best example:

“Prices for coffee have soared, fueled largely by volatile weather that's reduced crop harvests among major growers like Brazil and Vietnam, according to analysts.”

https://www.cnbc.com/amp/2025/09/04/why-coffee-prices-are-so-high-and-where-theyre-headed-next.html
 

Only political projectionists are declaring any victories.

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