Mainstream economists issued dire warnings when President Donald Trump announced his tariff campaign: prices would spike, they said, triggering a renewed inflation crisis, but that hasn't happened, reports CNN.
Annualized inflation hit 2.4% in May, up from 2.3% in April, which was the U.S. economy's lowest inflation since February 2021, according to the Bureau of Labor Statistics.
Goldman Sachs predicted that core goods inflation could hit 6.3% this year while JPMorgan said it would nearly double by the end of 2025.
However, many items haven't gotten more expensive — yet.
Dana Telsey, CEO and chief research officer of Telsey Advisory Group, said that's because "many retailers are still selling through their lower-cost inventory."
Added Fed Chair Jerome Powell: "Goods being sold at retailers today may have been imported several months ago, before tariffs were imposed."
Trump's team told CNN the economists who predicted a downturn "have all been discredited."
"What we got in the first term [of Trump's presidency] was not recession or inflation, we got price stability, robust economic growth and rising wages, just as we thought we would," he said.
Economists are saying it will still happen, though.
"It's a question of when, not if," Stephanie Roth, chief economist at Wolfe Research, told CNN.
Solange Reyner ✉
Solange Reyner is a writer and editor for Newsmax. She has more than 15 years in the journalism industry reporting and covering news, sports and politics.
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