Federal Reserve Chair Jerome Powell Issues Inflation Warning

In a significant statement on Wednesday, Federal Reserve Chair Jerome Powell highlighted the potential economic repercussions of sustained tariff increases by the US administration. According to Powell, such measures could lead to heightened inflation, a deceleration in economic growth, and an uptick in unemployment rates.

Impact of Tariff Policies on the Economy

"Should the announced substantial tariff hikes persist, we anticipate a rise in inflation, alongside a slowdown in economic growth and an increase in unemployment," Powell elaborated during a press conference. This commentary came in the wake of the Fed's latest decision to maintain interest rates at their current levels.

Looking Ahead: Fed's Strategic Moves

Despite acknowledging the current strength of the economy and the resilience of the labor market, Powell emphasized that future policy adjustments would be heavily influenced by forthcoming data. The Federal Reserve also reiterated its dedication to reducing its balance sheet, as it continues to address ongoing inflation risks and navigate through geopolitical uncertainties.