Goldman Kills The Right-Tail, No Longer Expects Sustained Tariff Inflation

Even if one ignores the bigger picture debate about whether tariffs spark inflation or deflation, and we have long said that contrary to conventional wisdom tariffs result in demand destruction - unless accompanied by a massive fiscal stimulus as was the case in 2020 - which is ultimately disinflationary or outright deflationary as increasingly more economists now admit including St Louis Fed's own researcher Javier Bianchi...

Wait, you mean tariffs are a negative demand shock... just as Minneapolis Fed researcher Javier Bianchi wrote and not a person at the Fed read?https://t.co/XQjc30RCQP pic.twitter.com/4ckGBZnkXP

— zerohedge (@zerohedge) May 13, 2025