Fed Chair: Tariffs “Highly Likely” To Spike Inflation

Yahoo Finance reports:

Federal Reserve Chairman Jerome Powell said Wednesday the central bank will “wait for greater clarity” before considering any interest rate adjustments as he expects President Trump’s tariffs to generate “higher inflation and slower growth.”

Those twin developments, he acknowledged during a Chicago speech, could create major dilemma for the Fed — which is obligated to keep prices stable while also maximizing employment.

Powell repeated many of the same points he made during his last speech on April 4, noting that “the level of the tariff increases announced so far is significantly larger than anticipated” and that it’s not yet known whether inflation produced by the duties will be temporary or more persistent.

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