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Nevertheless, Joseph Lavorgna, a former Wall Street economist turned Treasury Department official, took a victory lap because inflation hasn’t risen since Trump imposed tariffs during his second term.
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“Tariffs have just not shown up at all in any of the data,” Lavorgna, counselor to the Treasury secretary, told CNN this week. “The forecasting community has been completely wrong.”
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Lavorgna, a former SMBC Nikko Securities chief economist who also served in the White House during Trump’s first term, said a broad range of inflation metrics suggests foreign producers are absorbing tariffs and that the trade war won’t be inflationary.
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White House press secretary Karoline Leavitt echoed that message Thursday during a briefing, saying: “America is quickly returning to the successful formula of the first Trump administration: low inflation and rising wages.”
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