Janet Yellen: Tariffs Only Create ‘Modest Influence on Inflation’

EXCERPT:

YELLEN: "Well, it may push up prices a little bit, but I think when you take a hard look at the numbers, it's a very modest influence on inflation. And I think it's critically important that we create jobs in the United States, good manufacturing jobs in industries that is going to be increasingly important. We've had parts of the United States that have -- industrial production is hollowed out, and partly is a consequence of surging imports from China in the early 2000s, after China joined the WTO. And we want to engage in trade that's mutually beneficial. There needs to be a level playing field and China has agreed with us on that. And we're concerned about areas where the playing field clearly is not level. China is directing massive subsidies through their industrial policy on an ongoing basis. And when the demand isn't there, the Chinese firms do not go bankrupt as American firms do. They stay in the market and that can succeed in depressing prices to the point where very competitive American firms can be driven out of business. And Europe, Japan, and other countries feel the same."