The crypto market moves like a tempest, and today, it is a story of dramatic descent with brief glimmers of hope.

Ether (ETH) continues its downward spiral, carving out another 7% loss, as investors brace themselves for more turbulence.

Ether (ETH) continues to bleed, shedding another 7% as gloomy market mood prevails.

The world’s second-largest cryptocurrency slid further on Thursday, building on Wednesday’s losses that saw it fall below $1,500. At press time, ETH is trading around $1,400 and in the past 24 hours, it has slid to as low as $1,360.

As the cryptocurrency market navigates a tempestuous period, upbeat macroeconomic news might be in short supply. A disappointing turn in U.S. equities, particularly with tech titan Nvidia (NASDAQ:NVDA) unable to meet investor expectations, has dampened enthusiasm.

Notably, the New York Fed has shed light on the broader impacts of recent tariffs imposed by ex-President Trump on Chinese imports. In a surprising revelation, economists at the institution have estimated that these tariffs might have had a greater role in fueling inflation than previously acknowledged.

These tariffs, imposed in 2018, were part of the former president’s strategy to reduce the U.S. trade deficit with China. However, this move ultimately led to increased prices for American consumers and businesses, impacting everything from food and gasoline to machinery and furniture.

According to the New York Fed’s analysis, tariffs on Chinese imports contributed around 0.4 percentage points to the U.S. consumer price index (CPI) inflation rate each year. This finding is significant considering that the Federal Reserve’s preferred inflation measure, the core personal consumption expenditures price index, rose at an annual rate of 3.8% in April.

Moreover, the analysis indicates that the tariffs had a more pronounced impact on lower-income households, who are known to spend a larger proportion of their income on food and other consumer goods.

Despite the tariffs being a hot topic in 2018 and 2019, their contribution to inflation has been a subject of debate among economists. Some economists believe that the tariffs had a minimal impact on inflation, while others believe they might have contributed to around 0.1 percentage points per year.

However, the New York Fed’s analysis, which used a detailed macroeconomic model to assess the broader economic implications of U.S. trade policy with China, suggests that the tariffs’ contribution to inflation might be closer to 0.3 to 0.5 percentage points annually.

This analysis takes into account various factors, including the passthrough of import prices to consumer prices, the role of exchange rates, and the broader macroeconomic implications of tariffs.

The analysis also found that the tariffs led to a small reduction in U.S. output and employment, and had a slightly larger negative impact on the Chinese economy.

Overall, the New York Fed’s findings suggest that the tariffs imposed by ex-President Trump had a greater role in fueling inflation and had a smaller impact on output and employment than previous estimates.