Tariffs and Rate Rigging: The Federal Reserve’s Latest Power Play—or a Rare Moment of Prudence?

The Fed’s Official Line: Tariffs Are Fueling Inflation On Tuesday, Fed Chair Jerome Powell told the world what his inner circle has been whispering for months: if it weren’t for tariffs, interest rates would already be on their way down. Powell sat on a dais in Portugal alongside other central bank chiefs—most of them presiding over economies that look just as fragile—and said, “We went on hold when we saw the size of the tariffs.” In other words: the Fed didn’t want to cut rates and risk stoking more inflation if all those import taxes started feeding through to consumer prices. Maybe They’re Not Lying (For Once) Let’s be fair—tariffs really do make things more expensive. You slap taxes on…