Trump Admin Advisers Dismiss Tariff-Driven Inflation Claims Citing Muted Price Effects

Two prominent figures in the Trump administration and potential candidates for the Federal Reserve, Steven Miran and James Bullard, have both dismissed the idea that Trump’s tariff policies are contributing to inflation. Their statements, made in recent interviews, reflect a broader effort by Trump’s economic team to challenge the prevailing economic consensus on the inflationary risks of protectionist trade measures [1].

Miran, who currently serves as chair of the White House Council of Economic Advisers and is nominated to fill an upcoming Fed board vacancy, emphasized that there has been no evidence of tariffs causing persistent price increases. He noted that forecasts from outside analysts predicting significant inflation due to tariffs have not materialized [2]. His comments followed the release of July’s consumer price index, which showed a 2.7% year-over-year increase—above the Fed’s 2% target but below market expectations [3]. Miran argued that these data support the administration’s stance that current inflation levels do not justify maintaining elevated interest rates [4].

Bullard, a of the St. Louis Fed and one of the names being considered for the next Fed chair, also rejected the notion that tariffs are a major inflationary force. He said that the past six months of economic data since the new tariffs were imposed showed “very muted effects” on overall prices. In his view, any price increases stemming from tariffs are one-time adjustments and not ongoing drivers of inflation [5]. Bullard also predicted that the Fed’s rate-setting Federal Open Market Committee would begin cutting interest rates in September, with a full percentage point reduction expected over the next 12 months [6]. He linked this outlook to the lack of significant inflationary pressure from tariffs or taxes.

Both Miran and Bullard addressed the issue of the Fed’s independence, which has been a point of contention during Trump’s presidency. Trump has repeatedly criticized Fed officials, including current chair Jerome Powell, for not lowering rates more quickly. Miran emphasized that the central bank should remain free from political influence, while Bullard acknowledged that Trump has a right to his views but suggested such opinions should not dictate monetary policy [7].

If confirmed, Miran will join the Fed board before the end of the year, and the selection of Powell’s successor will play a critical role in shaping the Fed’s direction through the mid-2020s. Markets are closely watching these developments, with speculation growing over the timing and magnitude of potential rate cuts [8].

Sources:

[1] https://www.cryptopolitan.com/fed-board-hopefuls-steven-miran-and-james-bullard-say-trump-tariffs-not-driving-inflation/

[2] https://kathleenhays.substack.com/p/levy-sees-trump-nominee-marin-pushing

[3] https://mezha.net/eng/bukvy/trump-s-federal-reserve-chair-candidates-and-economic-policy-outlook/

[4] https://coinmarketcap.com/community/articles/689b95001a035523f370bf56/

[5] https://www.aol.com/news/ex-feds-bullard-says-hes-135004649.html

[6] https://www.fastbull.com/news-detail/schmid-says-feds-policy-rate-should-stay-on-4339353_0