Washington D.C. - Federal Reserve Chair Jerome Powell recently addressed concerns regarding the potential economic impact of tariffs imposed by the Trump administration. In his statement, Powell highlighted the likelihood that these tariffs will exert upward pressure on inflation. Increased tariffs raise the cost of imported goods, which businesses often pass on to consumers in the form of higher prices.
Furthermore, Powell cautioned that the tariffs could dampen economic growth. Trade disruptions caused by tariffs can lead to uncertainty and reduced investment. Businesses may delay expansion plans or reduce hiring due to concerns about the future of international trade. The Federal Reserve is closely monitoring these developments and is prepared to adjust monetary policy to mitigate any adverse effects on the economy. The Fed's primary goals are to maintain price stability and promote full employment.
Fed Chair: Tariffs Could Increase Inflation, Slow Economic Growth
Federal Reserve Chair Jerome Powell indicated that tariffs implemented by the previous administration could negatively impact the U.S. economy. He suggested that these tariffs are likely to contribute to higher inflation rates, making goods and services more expensive for consumers. Powell also warned that the tariffs could hinder economic growth by disrupting trade and investment. The Fed will continue to monitor the situation and adjust monetary policy as needed.
Source: Read the original article at CBS