Fed Chair Powell Warns of Inflation Surge Due to Trump's Tariffs
Jerome Powell forecasts rising inflation and slower economic growth as Trump’s tariffs take their toll, casting a shadow over U.S. financial markets.
Though he said the economy currently looks strong, he stressed the threat that tariffs pose and indicated that the Fed will be focused on keeping inflation in check.
Powell sees tariffs raising inflation and says Fed will wait before further rate moves
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Despite escalating trade tensions and market turbulence since Trump took office in January, the economy remains in solid shape by several key measures.
Fed Chair Powell says he expects Trump's tariffs will hike inflation and slow growth
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Trump announced reciprocal tariffs to address import duties and what he called “horrendous imbalances” in trade with foreign countries Wednesday during a Rose Garden event.
Jerome Powell Predicts When Americans Will Feel Ripple Effects From Trump’s Global Tariffs
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While uncertainty remains elevated, it is now becoming clear that tariff increases will be significantly larger than expected, and the same is likely to be true of the economic effects, which will include higher inflation and slower growth.
Fed Chair Powell says tariffs likely to cause inflation to rise, could be persistent
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While uncertainty remains elevated, it is now becoming clear that tariff increases will be significantly larger than expected.
Fed Chair Warns Trump Tariffs Will Lead to ‘Higher Inflation’ And Slow Economic Growth
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Weaker growth and higher prices are a tricky combination for the Fed.
Federal Reserve Chief Says Trump Tariffs May Raise Inflation
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The situation is a tricky one for Powell and the Fed.
Trump pressures Powell to cut rates just before Fed's tariff warning
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Powell maintained the Fed’s measured stance, underscoring that the central bank will be particularly attentive to inflation expectations.
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He warned that the tariffs are likely to raise inflation rates in coming quarters.
Powell Says ‘Significantly Larger Than Expected’ Trump Tariffs Are Bringing Uncertainty to Economy
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Trump’s extraordinary public interventions on rates have raised fears that the Fed’s independence is now at threat.
Trump’s tariffs will likely mean ‘higher inflation and slower growth’, says Fed chair
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Higher-than-expected inflation would likely keep the Fed away from cutting rates, raising the risk of further tensions with Trump.
Powell warns Trump tariffs, risks are ‘significantly larger than expected’
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Federal Reserve chief says Trump tariffs likely to raise inflation and slow US economic growth
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Summary
Federal Reserve Chair Jerome Powell stated that Trump’s expansive new tariffs are likely to generate significant inflationary pressures while slowing economic growth, amidst an uncertain financial outlook. Powell emphasized the need for the Fed to maintain inflation expectations as it navigates challenges posed by tariffs. He indicated that the central bank would stay cautious regarding interest rates until more clarity emerges on the economic impact. Trump's criticism of Powell’s rate policy further complicates the Fed’s position, as stock markets react negatively amid ongoing trade tensions.
Perspectives
Fed Chair Powell warns that Trump's new tariffs are likely to raise inflation and slow economic growth, with impacts significantly larger than previously expected.
Despite concerns, Powell states that key indicators still show a solid economy, with unemployment low and recent hiring data exceeding expectations.
The Fed is adopting a cautious approach and will wait for clearer data before making any decisions on interest rate changes.
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