Squawk Pod Blizzards & Tariffs Hit Washington 2/23/26
Feb 23, 2026
Jamie Pedersen, Washington state senator proposing a 9.9% income tax on millionaires, explains the plan and related business tax changes. Conversation covers how the tax is structured, revenue projections, and whether high earners might leave the state. Short, direct talk about collection assumptions and small business relief.
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Tariff Rollback Won't Fully Reverse Price Increases
- Economists expect lower effective tariff rates and a smaller but persistent inflationary hit after the ruling.
- Goldman and Barclays estimate effective rates and warn businesses likely won't roll prices back because uncertainty prevents reversals.
Fed Expected To Treat Tariffs As Persistent Policy
- The Fed likely assumes tariffs will be replaced and so monetary policy won't change because of tariff legal changes.
- Leisman says the Fed will take the administration at its word, keeping policy outlook steady despite trade uncertainty.
Balance Of Payments Argument Looks Legally Weak
- Section 122's 'balance of payments' framing clashes with the administration's investment claims, undermining legal basis for tariffs.
- Leisman notes true balance-of-payments crises involve capital flight and currency runs, which don't match the current investment narrative.