Federal Reserve Chair Jerome Powell mentioned Friday he expects President Donald Trump’s tariff coverage will hike costs and sluggish financial progress, whereas noting that key indicators “nonetheless present a stable economic system.”
Coverage adjustments carried out by the White Home have contributed to a “extremely unsure outlook,” Powell mentioned, making the remarks as shares plummeted amid an escalating world commerce battle.
Regardless of the murky outlook, Powell mentioned Trump’s tariffs would seemingly improve client costs.
“Whereas tariffs are extremely more likely to generate no less than a brief rise in inflation, it is also potential the results will probably be extra persistent,” Powell informed the viewers on the Society for Advancing Enterprise Enhancing and Writing convention in Washington, D.C.
Minutes earlier than Powell was set to talk, Trump sharply criticized the Fed chair, calling on him to cut back rates of interest.
Federal Reserve Chair Jerome Powell speaks throughout a information convention after the Federal Open Market Committee assembly, Mar. 19, 2025, on the Federal Reserve in Washington.
Kevin Dietsch/Getty Photos
“This might be a PERFECT time for Fed Chairman Jerome Powell to chop Curiosity Charges,” Trump mentioned in a publish on Reality Social.
Trump additionally claimed with out proof that political concerns have performed a job in Powell’s decision-making on interest-rate coverage.
On Friday, Powell declined to immediately reply to Trump. Nonetheless, Powell strongly rebuked any concern about his political independence.
“I do not reply to political remarks,” Powell mentioned, including that it might be inappropriate for the central financial institution to touch upon U.S. commerce coverage.
“We attempt to keep so far as we are able to from the political course of,” Powell mentioned. “That is what folks count on from us.”
It is a growing story. Please examine again for updates.