Federal Reserve Is Facing Some Difficult Choices: Editorial

A bleak scenario is unfolding for the Federal Reserve. By imposing unexpectedly high, comprehensive tariffs on US imports, the White House is threatening a massive shock to the economy’s supply side, disrupting production and raising prices at the same time. Unless this threat is lifted, the central bank might soon have to choose which part of its dual mandate to prioritize — jobs or low inflation.

Worse, it’s no longer so clear that the Fed will be allowed to decide for itself. Pressure is mounting for it to support the administration’s economic strategy, such as it is, regardless of officials’ ...