New York Fed: Tariffs borne mostly by U.S. consumers and businesses
Mar 3rd 2026
New York Fed president John Williams said a Fed study shows most tariff costs have been passed to U.S. businesses and consumers, adding roughly 0.5 to 0.75 percentage points to inflation and delaying progress toward the Fed's 2 percent target.
- NY Fed analysis finds up to 90% of tariff costs have been passed on to U.S. firms and consumers.
- Williams said tariffs have meaningfully increased U.S. prices for imported goods and the full effects may not yet be felt.
- He estimated tariffs have added about 0.5 to 0.75 percentage points to the current roughly 3 percent inflation rate.
- Those tariff-driven price gains have temporarily stalled progress toward the Fed's 2 percent inflation goal.
- Williams called the effect temporary and said he still expects the Fed to reach 2 percent by 2027.
- The white paper drew public criticism from White House officials, and markets currently price in potential Fed rate cuts later this year