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Tariffs Mean Higher Inflation, Slower Growth, Says Fed Chair
Business Standard
|April 05, 2025
US President Donald Trump's new tariffs are "larger than expected" and the economic fallout including higher inflation and slower growth likely will be as well, Federal Reserve Chair Jerome Powell said on Friday in remarks that pointed to the potentially difficult set of decisions ahead for the central bank.
"We face a highly uncertain outlook with elevated risks of both higher unemployment and higher inflation," undermining both of the Fed's mandates of 2 per cent inflation and maximum employment, Powell said in prepared remarks for a business journalists' conference in Arlington, Virginia.
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