Economics
Chart of Century Gives Powell Gloomy Glimpse of Trade-War World
- Higher prices, faster inflation could be in the cards
- Trump tariff battles threaten to upend global supply chains
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A multi-colored graphic that’s made the rounds at the Federal Reserve hints at what Chairman Jerome Powell could face if President Donald Trump succeeds in throwing globalization into reverse: Higher prices for many goods and potentially faster inflation.
Plugged as possibly the chart of the century by economist and originator Mark Perry, it shows that prices of goods subject to foreign competition -- think toys and television sets -- have tumbled over the past two decades as trade barriers have come down around the world. Prices of so-called non-tradeables -- hospital stays and college tuition, to name two -- have surged.