When President Donald Trump introduced a new wave of tariffs, many prominent economists sounded the alarm, warning that consumer prices would soar and reignite inflation. But according to CNN, those fears have not yet materialized.
Data from the Bureau of Labor Statistics showed that annual inflation in May reached 2.4%, only a slight increase from April’s 2.3%. That April figure marked the lowest inflation rate the U.S. had seen since February 2021.
Goldman Sachs had forecasted a significant rise in core goods inflation, projecting it could reach 6.3% within the year. JPMorgan also predicted inflation would nearly double by the end of 2025.
Despite these predictions, prices for many consumer goods have remained relatively steady so far.
Dana Telsey, CEO and chief research officer at Telsey Advisory Group, explained that the lack of price hikes is likely due to retailers still moving merchandise purchased at lower costs. “Many retailers are still selling through their lower-cost inventory,” she said.
Federal Reserve Chair Jerome Powell offered a similar explanation: “Goods being sold at retailers today may have been imported several months ago, before tariffs were imposed.”
Trump’s team dismissed the gloomy economic forecasts, telling CNN that those who had warned of dire consequences were now discredited.“The economists who predicted a downturn have all been discredited,” they said.
Trump himself defended the outcome of his first term: “What we got in the first term [of Trump’s presidency] was not recession or inflation, we got price stability, robust economic growth and rising wages, just as we thought we would,” he said.
Still, some economists insist that the effects of the tariffs are merely delayed.“It’s a question of when, not if,” Stephanie Roth, chief economist at Wolfe Research, told CNN.

{Matzav.com}