Jerome Powell Warns of Inflation Due to Tariffs, Fed to Hold Rates

Federal Reserve Chairman Jerome Powell has raised concerns about the potential inflationary impact of new tariffs, signaling that the central bank will maintain current interest rates for the time being. Speaking at a recent economic conference, Powell highlighted the delicate balance between fostering job growth and controlling inflation, especially in light of recent tariff impositions.

The announcement comes as markets react to the latest jobs report, with President Trump celebrating the figures as a sign of robust economic health. However, Powell's cautious stance on inflation has led to a dip in market confidence, as investors weigh the implications of sustained high tariffs.

Analysts at CNBC and Bloomberg have noted the Fed's hesitance to adjust rates amid these economic uncertainties, with some suggesting that the central bank is preparing for a longer-term strategy to combat potential inflation spikes. This development marks a critical juncture for U.S. economic policy, as the administration and the Fed navigate the complex interplay between trade policy and domestic economic stability.

• Donald Trump
• Federal Reserve
• Jerome Powell
• Tariffs

Detailed

Jerome Powell warns on Trump’s tariffs: High inflation could be here to stay

12 hours ago

- cnn

Powell sees tariffs raising inflation and says Fed will wait before further rate moves

14 hours ago

- cnbc

Stocks Sink as Powell Signals Damage From Tariffs: Markets Wrap

12 hours ago

- bloomberg

Powell Says Economic Fallout From Tariffs Is Likely Larger Than Expected

14 hours ago

- wsj

Tariffs likely to cause higher inflation and slower growth, Powell warns

20 hours ago

- washingtonpost

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