Next Fed Chair to Face Policy Contradictions Amid Tariffs and Inflation Pressures

The incoming Federal Reserve chair will confront significant policy tensions as tariff measures push up prices across multiple goods categories, a December 5 analysis shows. The U.S. is set to enter high-stakes trade negotiations with Canada and Mexico in the coming year, while pressure mounts for rate cuts despite ongoing inflation concerns. The situation will test the Fed's core assumption that tariffs produce one-time price increases rather than sustained inflationary cycles. Kevin Hassett, a long-time advisor and current frontrunner for the position, would face the challenge of balancing simultaneous demands for lower rates, strong economic messaging, and inflation control amid tariff-driven price pressures.