Overview

• Federal Reserve Chair Jerome Powell cautioned that President Trump's tariff increases are significantly larger than expected, likely driving higher inflation and slower economic growth.
• Powell raised concerns about stagflation, warning that the Fed's dual mandate goals of stable prices and maximum employment may come into conflict.
• U.S. stock markets plunged following Powell's remarks, with the Dow Jones falling 690 points, the S&P 500 dropping 2.3%, and the Nasdaq declining 3.4%.
• Bitcoin's price fell 2.5% within minutes of Powell's speech, reflecting broader market volatility and investor concerns about delayed monetary policy adjustments.
• Trump's escalating tariff measures, including a 145% levy on Chinese goods, have intensified U.S.-China trade tensions, contributing to economic uncertainty and market instability.