Story perspectives

Wholesale Prices Surge: Inflation Pressures Fed's Rate Cuts

2/28/2026

Center

Trump's Tariffs Fuel Inflation

U.S. wholesale prices rose in January as the producer price index (PPI) increased 0.5% from December and 2.9% year over year.
The core PPI, excluding food and energy, rose 0.8%, driven by service prices in wholesaling and retail.
Economists say tariffs imposed by U.S. President Donald Trump are contributing to inflation above Fed's 2% target.
The report indicates the Federal Reserve may pause rate cuts as inflation trends are assessed.

Left

Taiwan's Economic Growth

Taiwan Institute of Economic Research (TIER) projects Taiwan will grow 7–8% in 2026.
The move follows the Supreme Court ruling against broad tariffs as U.S. President Donald Trump invokes Section 122 of 1974 Trade Act to impose a 15% tariff.
Gordon Sun of TIER notes uncertainty but Taiwan’s outlook improves.
U.S. economists say the economy shows resilience despite tariffs, while inflation fuels frustration; legal challenges and rebates are anticipated.

History

Historical Context

The U.S. Trade Act of 1974, enacted in 1975, empowered the President to impose tariffs to protect domestic industries. In 2020, President Donald Trump invoked Section 301 to impose a 15% tariff amid escalating U.S.-China trade tensions. This ongoing conflict has significant implications for global trade policies and economic stability, as evidenced by Taiwan's projected economic growth amidst rising inflation.

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Trump's Tariffs Fuel Inflation

U.S. wholesale prices rose in January as the producer price index (PPI) increased 0.5% from December and 2.9% year over year.
The core PPI, excluding food and energy, rose 0.8%, driven by service prices in wholesaling and retail.
Economists say tariffs imposed by U.S. President Donald Trump are contributing to inflation above Fed's 2% target.
The report indicates the Federal Reserve may pause rate cuts as inflation trends are assessed.

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