04/08/2025

Fed Chairman Says U.S. Tariffs Likely to Raise Inflation

Powell also expects them to slow U.S. economic growth

The Trump administration's expansive new tariffs will likely lead to higher inflation and slower growth for the U.S. economy, Federal Reserve Chair Jerome Powell said Friday.

Powell said that the tariffs, and their likely impacts on the economy and inflation, are "significantly larger than expected." He also said the import taxes will probably lead to "at least a temporary rise in inflation," but added that "it is also possible that the effects could be more persistent."

"Our obligation is to... make certain that a one-time increase in the price level does not become an ongoing inflation problem," Powell said in remarks delivered to a conference of the Society for Advancing Business Editing and Writing.

Please select this link to read the complete article from The Associated Press.