How tariffs affect inflation rates in the U.S.

The U.S. is increasing tariff rates on goods imported from many countries. Some economists say these new trade policies may be inflationary. Others say foreign countries will pay for them. Research from the Federal Reserve shows that consumer prices may rise if businesses pass the added cost onto their consumers. But the Fed's leaders are considering the full effects of the administration's trade, immigration, regulatory and fiscal policies before adjusting monetary policy.