Fed Chair Powell says tariffs may increase inflation
Federal Reserve Chair Jerome Powell says the economy is in “good condition,” but notes inflation’s uncertainty.
President Donald Trump slammed Federal Reserve Chair Jerome Powell, saying his “termination cannot come fast enough!” a day after Powell warned about the impact of Trump’s tariffs.
“Unemployment is likely to go up as the economy slows, in all likelihood, and inflation is likely to go up as tariffs find their way and some part of those tariffs come to be paid by the public,” Powell said April 16, in remarks to the Economic Club of Chicago.
Powell added the Fed could face a “challenging scenario” from inflation and slower economic growth due to Trump’s tariffs, and said the central bank should focus on fighting inflation. That could mean delaying interest rate cuts.
Trump lashed out on April 17 with a social media post, saying Powell “should have lowered Interest Rates… long ago, but he should certainly lower them now.”