Federal Reserve Chairman Jerome Powell's Insights on Tariffs and the Economy

During a recent press conference, Federal Reserve Chairman Jerome Powell shared his observations on the current state of the economy in relation to trade tariffs. "We really don't see big economic effects in the data yet," Powell noted, highlighting the absence of significant impacts from tariffs in the economic data so far.

However, Powell expressed concerns about the potential for higher prices and inflation due to sustained increases in tariffs. "There are concerns that higher prices may be coming, people are worried now about inflation. They are worried about a shock from the tariffs. But that shock hasn't hit yet," he explained.

He further elaborated that if the announced tariff increases are maintained, the economy could face higher inflation, reduced growth, and increased unemployment. Powell emphasized, "Tariffs so far are significantly bigger than expected," signaling a cautious outlook for the future.