Fri Apr 04 15:48:17 UTC 2025: **Fed Chair Powell Warns of Inflation and Slow Growth Due to Trump Tariffs**
ARLINGTON, VA – April 4, 2025 – Federal Reserve Chair Jerome Powell warned Friday that President Donald Trump’s recently implemented tariffs will likely lead to higher inflation, slower economic growth, and increased unemployment. Powell stated that the tariff increases are proving larger than initially anticipated, and their economic consequences will be similarly significant.
In prepared remarks at a Virginia event, Powell emphasized that it is too early to consider altering U.S. monetary policy, suggesting the Fed will not be rushing to lower its benchmark interest rate, currently between 4.25% and 4.50%. The Fed remains focused on bringing inflation down to its 2% target.
Powell’s comments come amidst global market turmoil sparked by Trump’s announcement of steep tariffs on key trading partners. The prospect of increased import costs has unsettled investors. Despite market reactions, Trump, via his Truth Social account, urged Powell to cut interest rates, accusing the Fed chair of being “late” and playing politics. This marks a continuation of the strained relationship between the former president and the Fed chair he once appointed.
First Piper 