Fed Chair Powell says he expects Trump’s tariffs will hike inflation and slow growth

Fed Chair Jerome Powell said Friday he expects President Donald Trump’s tariff policy to hike prices and slow economic growth, while noting that key economic indicators “still show a solid economy.”

Policy changes implemented by the White House have contributed to a “highly uncertain outlook,” Powell said, making the remarks as stocks plummeted amid an escalating global trade war.

Despite the murky outlook, Powell said Trump’s tariffs would likely increase consumer prices.

“While tariffs are highly likely to generate at least a temporary rise in inflation, it’s also possible the effects will be more persistent,” Powell told the audience at the he Society for Advancing Business Editing and Writing conference in Washington, D.C.

Minutes before Powell was set to speak, Trump sharply criticized Powell, calling on him to reduce interest rates.

“This would be a PERFECT time for Fed Chairman Jerome Powell to cut Interest Rates,” Trump said in a post on Truth Social.

This is a developing story. Please check back for updates.