Former Fed Vice Chairman: Markets may underestimate the potential for inflation to cool this year

Odaily News Richard Clarida, former vice chairman of the Federal Reserve and current global economic adviser to Pimco, wrote an article reviewing his experience during Trump's first term in 2018-2019 and analyzing the challenges the Federal Reserve may face in 2025. Although inflation expectations appear to be stable at present, tariff policies may not meet expectations and their uncertainty may pose a hindrance to economic growth, which may cause inflation to unexpectedly decline significantly, thereby affecting monetary policy decisions. (Jinshi)