Federal Reserve Chairman Jerome Powell has warned that the tariffs recently imposed by President Donald Trump are “larger than anticipated” and could result in increased inflation and reduced economic growth.
In an address to a conference on business journalism, Powell emphasized the risks these tariffs pose, saying the Federal Reserve is confronted with a “highly uncertain outlook with elevated risks of both higher unemployment and higher inflation.”
In spite of these reservations, Powell signaled that the Fed is not anxious to change interest rates, taking a “wait-and-see” stance in order to see the complete economic effect of the tariffs.
The announcement has added to market volatility, with major indices suffering sharp falls amid concerns of a possible trade war and its effects on the global economy.
