Fed Nominee Milan: Tariffs Won’t Cause Inflation
Federal Reserve board nominee Milan stated that tariffs do not cause inflation, with U.S. goods price rises tracking global trends. She emphasized that tariffs have no inflationary effect, noting that enhanced border controls exert a deflationary impact and her inflation outlook considers factors beyond monetary policy. Milan argued that 1970s inflation stemmed from Federal Reserve policy mistakes and supply shocks, highlighting a historical mix-up between nominal and real interest rates by the central bank.
Neutral
Milan’s assertion that tariffs won’t spark inflation alleviates concerns about trade-driven price shocks, but it does not directly impact cryptocurrency markets. In past events, unexpected tariff hikes fueled risk-off sentiment and market volatility; by downplaying tariff risks, Milan may stabilize macro expectations without introducing new bullish momentum for crypto. Overall, the news reduces a potential inflationary headwind but lacks direct catalysts for crypto trading, suggesting a neutral market tone in both short and long term.