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Congressional Budget Office director Phillip Swagel<\/a>\u00a0said Monday that President Donald Trump’s<\/a> tariffs appear to have pushed inflation<\/a> up higher than CBO analysts had initially expected. <\/p>\n His views differ from those of Wall Street analysts, many of whom have been bracing for tariff-driven price hikes, but have yet to see them in materialize. <\/p>\n Speaking on CNBC’s “Squawk Box,” Swagel said the CBO analysis shows the economy has weakened since January, which he would expect to exert downward pressure on inflation<\/a>.<\/p>\n Swagel also shared his office’s long-term view of the impact of Trump’s tariffs: The CBO expects the levies to reduce the U.S. budget deficit by $4 trillion over the next decade by pouring money into the federal coffers.<\/p>\n “So $3.3 trillion of revenue and then $700 billion of averted debt costs,” he said. “That would be a big reversal in terms of the deficit.”<\/p>\n Read more CNBC politics coverage<\/p>\n Trump’s tariffs face an uncertain future. The Supreme Court is set to hear <\/a>oral arguments in early November, after the Trump administration appealed lower court rulings that found the president had exceeded his authority. <\/p>\n Swagel said that the outcome of the Supreme Court tariff case is “one of the key uncertainties in the economy.”<\/p>\n