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- Inflation can rise and growth may be slow As a result of President Donald Trump’s tariff policy, the Federal Carried Report Jerome Powell. On Wednesday, Powell said that the fed’s highest goal continues to increase the price of Trump tariffs with a disposable measure, so inflation does not stretch.
Federal Reserve Chair Jerome Powell re-re-re-warned President Donald Trump’s re-fare.
“The level of tariff growths, which is so far, is much larger than expected, and the same probably belongs to the economic impact that will cover higher inflation and slow growth,” said Powel spoke about Wednesday during his speech at Chicago’s economic club.
Tariffs increase inflation and slow growth, Powel said, repeating a point in the beginning of this month. They were also very difficult for expectations, enterprises and consumers were about the economy.
“The surveys of households and enterprises provide information on a large uncertainty about the sharp decline and outlook in thought, reflect concerns about trade policy,” Powelll said.
The economy has already faced “increased risks increased risks”
Since POWELL Latest comments At the beginning of this month, the White House was withdrawn and then reorganized numerous parts of the original widespread tariff policy. Most importantly, Trump having step Tariffs declared for each country on April 2 Apart from ChinaStruck by additional monetary savings. His leadership was later given freedom For certain products such as smartphones and semi-presenters, Trump personally intervened reverse course in these freedoms. Permanent and forward-resistant and forward enterprises and the background for investors and investors, many of them still stem from a market accident Trump tariffs.
Powell will raise the prices of “highly probable” tariffs, but how long the main question of the fed is still evaluated.
“Our commitment is to continue inflation expectations, and once a one-time price level is due to the continuing inflation problem,” he said.
One of the main measures is the Fed, the estimates of the economy are long-term inflation expectations. If this rose, it means a chronic problem that does not go away with business leaders, investors and inflation in inflation in a large way. When this happens, it is more likely to return the costs that increase the likelihood of a recession.
The latest CPI report from March is a shorter of inflation at 2.4%, slightly lower than expected. However, the read Trump came before implementing his own tariff policy.
As Powell’s last spoke, the economic conflicts of Trump’s tariffs came out of the stock exchange bond market. The US and global shares provide a product in 10 years and 30 years of treasures at the same time as square. Gave the indicator of dreaded investors from shares in US bonds, which they removed and the safest investment in the world selling Those assets are also. This dynamics expressed a lack of unprecedented faith in the US economy.
“There is no modern experience to think about it,” Powell said this recently informed about the applied tariff policy.
The actions in the closed market were unusual according to Powell, according to Powell, said to be exposed to the consequences.
“Historically processing unique developments and working with great uncertainty, “Powell said.”
As a habit, Powell did not show the upcoming monetary policy when the actions or happen. Instead, Powell said that the relative force of the US economy took the Fed time before making a decision.
“Currently, we have been well placed to expect more clarity before taking into account any adjustments to our position.”
Trump tariffs are almost certain to increase the prices of enterprises and consumers who prevent the efforts of the wrongs of the fed to lower inflation. In that scenario, the speed can be guaranteed. However, the Fedin will be reverse from the record period since September. At the same time, if the US economy decognizes the decline, the ratio reduction would be guaranteed. In the worst case scenario, when inflation is high, the economy does not grow. Powell determined that the Fed’s full-time employment and stable prices have identified a “tension” of “tension” of dual mandate targets “difficult”.
“It is a difficult place to be in central banks,” said Powell.
The range of results is just expansion because it is fed or to do or do.
The market is currently the price of two and three compared prices in 2025, starting from the second half of the year. However, these plans may vary by taking into account the fact that the variable works are the economy.
“Markets are fighting a large number of uncertainty and this means variation,” said Powell.
This story was first displayed Fortune.com
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