William Lee, the Chief Economist at the Milken Institute, recently shared insights on the minimal effects of tariffs on the economy. He pointed out that imports only account for 14% of GDP, signifying that tariffs are not a powerful tool in curbing GDP growth. Lee’s analysis emphasizes low inflation and soft consumer sentiment data as key indicators. He also suggested that the Federal Reserve might consider rate cuts due to the ongoing economic slowdown. Lee’s perspective sheds light on the complex interplay of tariffs and their limited impact on economic performance, encouraging a more comprehensive discussion among policymakers and economists alike.