Washington D.C. Federal Reserve Chairman Jerome Powell expressed concerns Wednesday about the potential economic consequences of new tariffs imposed on imported goods. Speaking at a conference, Powell stated that the tariffs, implemented under the Trump administration, are larger in scope than previously expected and could pose a risk to the U.S. economy.
"These tariffs represent a significant change in the global trade landscape," Powell said. "We are carefully monitoring their impact on inflation and economic growth." He added that the Fed is prepared to adjust monetary policy if necessary to cushion the economy from any adverse effects.
Economists generally agree that tariffs, which are taxes on imported goods, tend to raise prices for consumers and businesses. This is because companies often pass on the cost of the tariff to their customers. The concern is that higher prices could dampen consumer spending and slow economic growth.
The Trump administration has defended the tariffs as a way to protect American industries and jobs. However, many businesses and trade organizations have argued that the tariffs are harmful and could lead to retaliatory measures from other countries. The Federal Reserve will continue to analyze the situation and react as needed.
Fed Chair: Tariffs Pose Risk to US Economy, May Increase Prices
Federal Reserve Chairman Jerome Powell has warned that recently implemented tariffs could negatively impact the U.S. economy. Powell stated the tariffs, enacted by the Trump administration, are more substantial than initially anticipated. He suggested these import taxes could lead to higher prices for consumers. The Fed will continue to monitor the situation and adjust monetary policy as needed to mitigate potential economic fallout.
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