"Federal Reserve holds interest rates..." Well yes as the tax returns should show up soon thus the tariffs will be passed on more to consumers when they have more money to pay them. It is costly for businesses to find tax loopholes and taking losses for them and stock investors pushing risk. And with people as things are they spend a lot right now so with supply and demand with high demand the cost does go higher with people demanding more anyway add to things and inflation.
~~~Not passing on tariff costs to consumers is highly costly for businesses, often leading to significantly reduced profit margins, diminished cash flow, and potential business insolvency Rather than being absorbed by foreign exporters, 96% of the burden of U.S. tariffs falls on American importers and businesses. This forces companies to absorb billions in costs, restricting their ability to hire or invest.
When businesses do not pass on costs, they essentially subsidize the tariff, creating a high-risk, low-profit environment. - AI note.
~~~The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the president," Powell said. "This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions or whether instead monetary policy will be directed by political pressure or intimidation. https://www.theguardian.com/business/2026/jan/28/federal-reserve-holds-rates-powell-trump
~~~~Because only a fraction of tariff costs hit consumer prices immediately, the burden accumulates quietly within supply chains, draining the discretionary income that fuels broader economic growth.
Even the digital frontier has felt the chill. Speculative markets, including cryptocurrency, have hit a liquidity plateau. When households and businesses are forced to redirect capital toward higher costs for basic goods and materials, there is less fuel left for riskier investments. The economy is not in a free fall, but it is certainly stuck in the mud, weighed down by the very policies promised to set it free. https://thefulcrum.us/economy/tariffs-and-american-households
