Fed Chair Powell Critiques Impact of Trump's Tariff Policies on Economy

Federal Reserve Chair Jerome Powell highlighted the economic challenges posed by the Trump administration's tariff policies. Increased import tariffs have led to slower growth and higher inflation. Despite Trump's call for interest rate cuts, the Fed opted to maintain current rates amid rising economic uncertainty.

Federal Reserve Chair Jerome Powell critically assessed the Trump administration's tariff policies, indicating they have impeded economic growth and temporarily elevated inflation. Powell shared these insights on Wednesday, sparking a response from President Trump.

He voiced concerns over the heightened uncertainty faced by Federal Reserve policymakers, attributing part of the inflation rise to tariffs imposed on trading partners. This comes after the Fed's decision to maintain the benchmark overnight rate within a 4.25%-4.50% range.

Trump's tariffs have led to widespread economic uncertainties, with Powell emphasizing the need for cautious deliberation in future policy decisions. This new financial landscape underscores the challenges the Federal Reserve faces in navigating economic stability amidst policy changes.

(With inputs from agencies.)