Prudential: Once the announced tariff measures take effect, the U.S. inflation rate is expected to rise by 1 percentage point

Prudential expects that once the announced tariff measures take effect, they will lead to a 1 percentage point increase in the U.S. inflation rate and a 1 percentage point decrease in GDP. The company pointed out that erratic tariff policies could trigger market turmoil and have potential impacts on economic growth. Prudential believes that businesses may not fully pass on the increased costs to consumers, especially when consumers are facing stagnant wages and declining savings. The Federal Reserve will pay attention to the impact of tariffs on the economy and may tolerate one-time price increases