Rate Cuts Possible After Research Shows Tariffs May Lower Inflation

Interest-rate cuts could be justified after San Francisco Fed research indicated that high tariffs imposed by Donald Trump might reduce inflation instead of raising it.Researchers Regis Barnichon and Aayush Singh found that the average 17% levy could increase unemployment while cooling prices, based on historical data from the USA, France, and the UK.These findings emerge as manufacturing activity contracted for a tenth month in December, with the ISM index standing at 49.3.