01/12/2026
For years, inflation barely crossed Americans’ minds. Then the pandemic hit — and prices exploded: eggs soared, gas spiked, and flights became unaffordable. Inflation moved from an abstract economic term to the center of a white-hot political debate, shaping the 2024 election. Economist Martha Olney unpacks what drives inflation, the Fed’s balancing act, and the uncertainty around Trump’s tariffs. “If tariffs stay where they are,” she says, “we’re going to see price impacts — likely in 2026."
An award-winning Berkeley economist explains what drives inflation, how the Fed fights it, and what Donald Trump’s dizzying tariff policies might mean for our wallets.