Federal Reserve Chair Jerome Powell warned of a potential rise in inflation following President Donald Trump’s tariffs and declining consumer sentiment.
“The administration is, as I mentioned in my remarks, implementing significant policy changes, and particularly trade now is the focus, and the effects of that are likely to move us away from our goals,” Powell said in his first remarks since Trump paused most of the steep tariffs.
Speaking at the Economic Club of Chicago on Wednesday, Powell said the economy was still in a “solid position,” but unemployment and inflation were “likely to go up as tariffs find their way and some part of those tariffs come to be paid by the public.”