Overview

• Federal Reserve Chair Jerome Powell warned that President Trump's recently announced tariffs are likely to increase inflation and slow economic growth.
• Powell emphasized the Fed's commitment to maintaining its current interest rate policy while monitoring the economic impact of the tariffs.
• President Trump publicly urged Powell to cut interest rates, accusing him of 'playing politics,' as markets reacted negatively to the new trade measures.
• The tariffs, including a 10% blanket levy on all imports, are larger than anticipated and have caused significant declines in major stock indices.
• Powell highlighted the Fed's dual mandate of price stability and maximum employment, stressing the need for caution and clarity before making policy adjustments.