Blog: Trade Wars-Transitory, or Hubris?

The last time Fed Chair, Jerome Powell, said that inflation from would be "transitory" he was spectacularly wrong. On March 26 he used the same word to describe the inflationary impact of tariffs. Last time he believed that inflation due to supply shortages would be temporary, and quickly fixed. Instead inflation from supply shortages seeped into other parts of the economy. What exactly does Powell believe this time around?

Powell is implying that the trade war will be over quickly, just as he thought that supply chains would be fixed . . . quickly. While that's possible, I remain skeptical.