US inflation has jumped by 5.5% at an annualized rate, with the core consumer price index, stripping out volatile food and energy costs, rising to its highest in four decades. The surge comes as Donald Trump’s tariffs continue to fuel consumer concerns. Federal Reserve Chair Jerome Powell faces increased scrutiny amid the crisis.
The recent inflation reading has sparked warnings from economists, with Larry Summers describing it as “the riskiest period for inflation policy since the early Biden administration.” The strong economy is under pressure, and price pressure can endure for a long time.
The impact of Trump’s tariffs on the economy is a growing concern. Economists are divided on the effects, but one thing is clear: the situation requires urgent attention from policymakers. With global economic uncertainties rising, the US inflation crisis needs to be addressed to prevent further instability.
Source: https://www.economist.com/finance-and-economics/2025/02/18/american-inflation-looks-increasingly-worrying