On the local time of the 4th, U.S. Federal Reserve Chairman Powell stated in Arlington, Virginia, that the tariff policies imposed by the Trump administration will increase inflation and drag on U.S. economic growth.
He said at the annual meeting of the American Society of Business Editors and Writers that the extent of the tariffs imposed by the Trump administration and the potential impact on the economy are "far beyond expectations."
He believes that imposing tariffs will "at least raise inflation in the short term and may also bring more lasting impacts."
He emphasized that the full impact of the Trump administration's tariff policies on the economy cannot yet be determined, "In this uncertain situation, all we can do is wait and see."
Powell also stated that while the U.S. economy and employment situation are currently robust, consumers and businesses have become "more pessimistic" about future expectations.
Trump urges Powell not to play politics
Additionally, Trump stated on social media on the 4th that now is the "perfect time for a rate cut" for the Federal Reserve.
He said: "Powell, cut rates, don’t play politics."
Usually, when economic growth slows down, the Federal Reserve promotes economic growth through rate cuts; when inflation is high, it addresses inflation through rate hikes. The U.S. media believes that the simultaneous occurrence of growth slowing and inflation rising will put the Federal Reserve in a difficult position.