Fed Chair Jerome Powell Warns About Potential Inflation Rise Due to Tariffs

Federal Reserve Chair Jerome Powell stated in a recent interview that rising tariffs could lead to an increase in inflation, which could be persistent. He noted that the current economic conditions, particularly the impact of tariffs on imports, create risks that could change price dynamics for both consumer goods and services.

Powell emphasized that trade policies and changes in tariff boundaries could have a significant impact on the economy. Increasing tariffs on a range of goods could not only raise their prices for consumers but also lead to broader price increases, as producers may pass their increased costs onto the end consumer.

Additionally, the Federal Reserve meeting will also discuss general measures to combat inflation. Powell expressed confidence that the Fed would act effectively but warned that this process could take time, especially if inflationary conditions become more prolonged.

In conclusion, Jerome Powell pointed out that the competitive positions of producers in the context of high tariffs are also on the Fed's agenda and may influence the decisions made by the Central Bank in the future. The economy's ability to adapt to changes in tariffs will be an important factor in determining future monetary policy.

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