Federal Reserve's latest view: Will tariffs really curb inflation?

【Crypto World】Recently, the San Francisco Fed released an interesting analytical report. Their conclusion is somewhat surprising — tariffs do not push up prices. It sounds contradictory, but the logic is actually quite clear: the uncertainty brought by tariffs scares off consumers and businesses, everyone pulls back, market demand declines, and inflationary pressure is suppressed.

But what does this mean? The cost of economic growth could be greater. Insufficient demand is a signal of economic slowdown, and the impact on asset markets follows. This “trade-off between recession and low inflation” logic directly affects crypto asset valuations — weakening expectations of easing, and the attractiveness of risk assets naturally diminishes.

It’s worth paying attention to the policy trade-offs behind this: stabilizing prices or stabilizing growth? The Federal Reserve’s choice in this dilemma will reshape the entire asset allocation logic.