Tariffs can take up to a year to fully impact consumer prices, according to new research from the Federal Reserve Bank of New York, while a separate report from the Federal Reserve Board shows an increase in the share of U.S. families facing heavy debt payment burdens.
In a recent research paper and a separate blog post, Mary Amiti and Sebastian Heise of the New York Fed and David Weinstein of Columbia University found that each percentage point increase in average tariffs was associated with an approximately 0.25% increase in consumer goods prices after one year.
About two-thirds of the increase comes from higher prices for imported consumer goods, according to the researchers. Some foreign exporters lowered their prices to absorb part of ...