On Friday, Federal Reserve Chair Jerome Powell said he expects Trump’s tariffs will raise inflation and lower growth. Powell suggested that the central bank won’t move on interest rates.
“We are well positioned to wait for greater clarity before considering any adjustments to our policy stance,” he said. “It is too soon to say what will be the appropriate path for monetary policy.”
Powell, in remarks in Arlington, Virginia, said that the tariffs and their impacts on the economy and inflation are “significantly larger than expected.” He further said, according to CBS News, that the import taxes are “highly likely” to lead to “at least a temporary rise in inflation,” but added that “it is also possible that the effects could be more persistent.”
“Looking ahead, higher tariffs will be working their way through our economy and are likely to raise inflation in coming quarters,” Powell said. “Our obligation is to … make certain that a one-time increase in the price level does not become an ongoing inflation problem,” he added.
Donald lashed out on Truth Social on Friday in a post to urge Powell to cut rates, writing that now would be the “PERFECT time” to do it.
“This would be a PERFECT time for Fed Chairman Jerome Powell to cut Interest Rates,” It wrote. “He is always “late,” but he could now change his image, and quickly.”
