SPECIAL RELEASE: Inflation Headed DOWN From Here, Despite Tariffs | Steve Hanke
Disinflation, recession & a market correction ahead?
Given the world’s intent focus awaiting Federal Reserve Chairman Jerome Powell's speech today at Jackson Hole, I thought I’d do a special Friday release and bring an inflation expert on the program.
The question that has been on everyone's mind is: Where is inflation headed from here?
Is it set to surge as the Trump tariffs start being felt in full force?
Or is it set to trend downwards to the Fed's 2.0% target due to a slowing economy?
To discuss the latest possibilities, we have the good fortune to sit down and get a full update today from Steve Hanke, professor of applied economics at the Johns Hopkins University in Baltimore, Maryland.
Steve is confident that the Quantity Theory Of Money formula projects that inflation will fall over the coming quarters -- and, yes, that's even when taking the tariffs into consideration.
To hear why, click here or on the video below:
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Adam’s Notes: Steve Hanke (recorded 8.22.25)
EXECUTIVE SUMMARY:
Economic Outlook: Steve Hanke predicts a weakening U.S. economy heading toward recession, driven by tight monetary policy and tariff uncertainties, with inflation trending down to 2% or below within 12 months.
Market Assessment: Financial markets are in bubble territory, overvalued and overhyped, with risks of a pop or slow deflation; rebalancing portfolios is key, avoiding all-in/all-out decisions.
Wealth Disparity: Asset surges from M2 growth favor
