As Trump berates Goldman, other economists agree that higher tariff inflation is coming

• Goldman Sachs is taking the heat for its call that heavier tariff-induced consumer inflation is ahead, but it’s far from alone in that view among its Wall Street brethren.
• Most see at least a steady grind higher in prices as tariff clarity emerges and what look to be effective rates around 18% take root.
• No one is calling for runaway inflation. Monthly gains of 0.3%-0.5% are what most expect, but that could push the Federal Reserve’s preferred core measure to somewhere in the low- to mid-3% range.

Goldman Sachs is taking the heat for its call that heavier tariff-induced consumer inflation is ahead, but it’s far from alone in that view among its Wall Street brethren.

Despite investors’ embrace of Tuesday’s fairly benign consumer price index report, economists expect that the biggest impact to inflation is yet to come.

With pre-tariff inventories rolling off, effective tariff rates climbing higher and companies less willing to absorb higher costs from the duties, the general feeling is that consumers are increasingly going to feel the bite through the rest of the year.

Source: https://www.cnbc.com/2025/08/13/as-trump-berates-goldman-other-economists-agree-that-higher-tariff-inflation-is-coming.html