Washington D.C. Federal Reserve Chair Jerome Powell has indicated that tariffs enacted under the Trump administration are partially responsible for the ongoing inflation challenges facing the U.S. economy. Speaking at a recent economic summit, Powell highlighted the impact of these trade policies on supply chains and import costs, ultimately contributing to higher prices for consumers.
"We are not in a hurry," Powell stated earlier this month, signaling a measured approach to adjusting interest rates and other monetary tools. The Fed is balancing the need to curb inflation with the desire to avoid triggering a recession.
Economists have long debated the effects of the tariffs, with some arguing that they protect domestic industries and others contending that they increase costs for businesses and consumers. Powell's comments add further weight to the argument that the tariffs have played a role in the current inflationary environment. The Federal Reserve continues to analyze a wide range of economic indicators, including trade data, to inform its policy decisions and navigate the complexities of managing inflation.
Federal Reserve Chair Links Trump-Era Tariffs to Inflation
Federal Reserve Chair Jerome Powell suggested that tariffs imposed during the Trump administration are contributing to current inflationary pressures. Powell made the remarks while discussing the complexities of managing inflation during a recent economic forum. The Fed is carefully monitoring various factors, including trade policies, as it considers future monetary policy decisions. He emphasized that the central bank is proceeding cautiously.
Source: Read the original article at ABC