US EditionFed Says Tariff Impact on Inflation Is Still Uncertain
DISTRICT OF COLUMBIA, UNITED STATES, JUN 24 – Federal Reserve Chair Jerome Powell warned tariffs imposed by the Trump administration will likely raise inflation this summer, complicating decisions to cut interest rates amid economic uncertainty.
- Federal Reserve Chair Jerome Powell testified before Congress on June 24 and 25 that the recent tariffs imposed by the government are expected to contribute to higher inflation in the United States in the near future.
- Powell explained that uncertainty about the timing and size of tariff-driven inflation has led the Fed to adopt a cautious approach and delay rate cuts until more data emerges.
- He noted that economic growth is slowing this year, tariffs may cause higher prices for consumers, and that meaningful inflation effects are expected during the summer months of June through August.
- Powell emphasized that there is no need to hurry in decision-making, stating that if inflation remains under control, the Fed will eventually consider lowering interest rates, while also noting that the inflation effects might only be temporary.
- The Fed’s cautious stance implies possible rate cuts later this year if inflation remains contained, but officials remain watchful of tariff impacts and overall economic risks.
13 Articles
13 Articles
Fed Chair Warns Tariffs May Raise Consumer Prices in Coming Months, Republicans Accuse Him of Bias
Federal Reserve Chair Jerome Powell said Wednesday that President Donald Trump’s sweeping tariffs will likely push up inflation in the coming months, even as some Republican senators suggested the chair was biased against the duties. On the second day of his twice-yearly testimony before the House and Senate, Powell said that consumers will likely have to shoulder some of the cost of the import taxes. Most Fed officials support cutting rates thi…
Fed Chair Powell Says Effects of Tariffs Take Time to See
Federal Reserve Chair Jerome Powell says he expects to see meaningful price effects from tariffs in the June, July and August time frame. But if they don’t see it, that will carry lessons. "We can’t know it until we actually see it, but I think we’ll be learning as we go," he said while testifying before Congress. (Source: Bloomberg)
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