And the range of potential trade measures under discussion is even wider now than it was in January. It includes a border-adjustment tax, increased tariffs aimed at specific industries or countries, nontariff barriers and even broader, multilateral measures.
More important, even for a shock as persistent as this one, the policy response under headline inflation has to be unwound in the sense that the federal funds rate must drop substantially below baseline once the first-round effects of the shock drop out of the inflation data.