About this work
Tariffs create different inflation problems across economies. Higher goods costs affect the United States and its trading partners, while slower growth and stronger currencies ease pressures elsewhere. Emerging market central banks respond unevenly, with Brazil standing out for tightening through June 2025. The Federal Reserve faces its own conflict between tariff inflation and weakening employment.
Cite this work
Marcello Estevão, Jonathan Fortun (2025). Global Macro Views: Tariffs, Diverging Central Banks, and the New Inflation Mix. Institute of International Finance.