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Fed minutes show tariffs factored into concerns about higher inflation

1. Fed minutes indicate concerns over tariffs impacting inflation rates. 2. Policymakers see upside risks in inflation outlook due to trade policy changes. 3. Businesses may pass higher tariff costs onto consumers, increasing inflation. 4. Inflation rose 3% in January, higher than expectations. 5. Potential tariffs on additional goods could further elevate inflation pressure.

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FAQ

Why Bearish?

Heightened inflation concerns can lead to tighter monetary policy, negatively impacting equity valuations.

How important is it?

Trade policy and inflation concerns have historically affected S&P 500 valuations significantly.

Why Short Term?

Immediate reactions to inflation reports can influence market sentiments quickly, as seen in prior volatility.

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