Feda Jerome Powell’s chairman warned on Friday that the caring tariffs of President Donald Trump is likely to push the inflation more, damaging the hopes of investors that the central bank will reduce interest rates later this year.
“Larger tariffs will go through our economy and are likely to raise inflation in the coming districts,” Powell said, speaking in Washington, DC at a conference of business journalism.
“Now it becomes clear that the tariff increase will be significantly higher than expected, and the same will be true for economic effects, which will include more inflation and slower growth,” he said.
Powell emphasized that the current economy is strong, stating strongly Job report Posted on Friday. But he also said that the uncertainty of the president’s change of politics makes consumers and companies nervous and put the Fed in a way of waiting and watching. The data from the job reports have been collected before several recent events that could have major economic consequences, such as Trump’s announcement of the tariff “Release Day,” Powell admitted. Like Trump’s announcement “Liberation Day”, Powell admitted.
This story is originally shown on Fortune.com