Yellen expects Trump's tariffs will hike inflation to 3% year over year [View all]
Source: NBC News/CNBC
June 12, 2025, 6:22 PM EDT / Source: CNBC
Former Treasury Secretary Janet Yellen predicts President Donald Trump’s tariffs will cause prices to rise and average household income to fall, despite a slowing trend in the U.S. inflation rate. “I would expect inflation, on a year-over-year basis of this year, to shoot up to at least 3%, or slightly over, because of the tariffs,” Yellen said Thursday on CNBC’s “Money Movers.”
The Biden-era Cabinet secretary made that prediction even as she noted that when it comes to Trump’s tariffs, “There remains a huge degree of uncertainty about exactly what is going to go into effect.” But “I definitely expect that we’re going to see them impact pricing,” she said.
That will lower average household income, Yellen added. “The most recent and optimistic estimate I’ve seen suggested that the average household will see on the order of $1,000 reduction in income,” due to tariffs and their knock-on effects, she said.
“It could be greater than that, depending on how things play out with the tariff program,” she said.
Read more: https://www.nbcnews.com/business/economy/yellen-expects-trumps-tariffs-will-hike-inflation-3-year-over-year-rcna212754
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