Potential Challenges for the Federal Reserve Due to Tariffs, Says Jerome Powell

The head of the Federal Reserve, Jerome Powell, has stated that the central bank may face complex scenarios related to the implementation of trade tariffs. Powell pointed out that the increase in import tariffs could significantly impact the economy, complicating the task of controlling inflation and maintaining economic growth.

In his remarks at an economy-themed meeting, Powell emphasized that while tariffs may serve as an impetus for certain sectors, overall they create uncertainty and could lead to negative consequences for investment and consumer spending. These factors, in turn, could exacerbate economic conditions and influence decisions regarding interest rates.

He also urged the need to care for economic sustainability and avoid excessive reliance on protective measures. Powell noted that it is essential to strike a balance between protecting domestic producers and maintaining competitiveness on the global stage.

In conclusion, Powell expressed hope that the Fed could adapt to changing economic conditions and continue to support stability in the country to minimize the impact of external factors such as tariffs.

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