CHARLOTTESVILLE, VA (CVILLE RIGHT NOW) – Inflation may be stabilizing, but the real economic concern ahead is a weakening economy, says Dr. Ed Burton, chief economic analyst and University of Virginia professor. On Morning News, Burton said despite reports suggesting a rise, inflation remains under control. “Inflation was estimated to come in at 0.3 and that’s exactly where it came in… inflation is not really the big issue going forward. It’s potential weakness in the economy,” he said.
Burton warned that ongoing tariff policies, compounded by a weakening dollar, could severely harm American consumers. “What would happen in Virginia if you raised the sales tax 30%? Well, prices would go up for a while, but the economy would get hit so bad that some prices would actually go down and wouldn’t really create inflation. It would just weaken the economy,” he said, emphasizing that tariffs are essentially a tax on Americans, not foreign entities. He also noted that diminished global trust in U.S. economic leadership, driven by confrontational policies, is eroding interest in American assets, further hurting the dollar…