Federal Reserve Chair Jerome Powell Expresses Concerns Over Tariffs

During a recent press briefing, Federal Reserve Chair Jerome Powell highlighted the potential negative impacts of increasing tariffs on the U.S. economy. Powell cautioned that these trade barriers could not only stall the progress made in controlling inflation but also hinder economic growth.

Impact on Inflation and Economic Policy

Powell pointed out that elevated trade barriers are likely to exert upward pressure on prices, despite the current cooling of inflation from its peak levels. He emphasized the uncertainty surrounding the scope and scale of these tariffs, noting that the Federal Reserve cannot act preemptively without clear data.

Looking Ahead

The Fed Chair also mentioned that the central bank does not provide recession probability projections. Instead, it focuses on monitoring inflation and employment data to guide its policy adjustments. Powell's remarks underscore the delicate balance the Fed must maintain in navigating through these uncertain economic times.