Washington D.C. - Federal Reserve Chairman Jerome Powell has cautioned that former President Donald Trump's proposed tariffs are anticipated to push inflation higher. Speaking at a recent economic forum, Powell addressed concerns surrounding the potential impact of increased import taxes on consumer prices.
"We are carefully evaluating the potential consequences of these tariffs," Powell stated. "Historically, tariffs have contributed to inflationary pressures, and we expect a similar effect should these measures be implemented." His comments come as the U.S. stock market experienced a sharp decline, largely attributed to escalating trade war anxieties.
Economists are divided on the precise magnitude of the inflationary impact. Some argue that the tariffs will disproportionately affect specific industries, while others foresee a broader impact across the economy. The White House has yet to issue a formal response to Powell's remarks. The situation remains fluid, and financial analysts are urging businesses and consumers to prepare for potential economic volatility.
Powell: Trump's Tariffs Likely to Increase Inflation
Federal Reserve Chairman Jerome Powell indicated that proposed tariffs by former President Trump are expected to contribute to rising inflation. This statement comes amidst concerns about the potential economic impact of increased import taxes. Powell's remarks coincided with a significant drop in U.S. stock market values, fueled by escalating trade tensions. Experts are closely monitoring the situation to assess the long-term effects on the economy.
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