The US economy is expected to face significant challenges due to the ongoing trade war launched by the White House. Federal Reserve Chair Jerome H. Powell has warned that tariffs will likely cause higher inflation rates and slower economic growth.
Powell stated on Friday that the economic impact of the trade war is still unclear, but it will have a profound effect on the economy. The uncertainty surrounding the outlook has led to a wait-and-see approach by the Federal Reserve, indicating its cautious stance on monetary policy.
The imposition of tariffs is likely to drive up prices and slow down economic growth, according to Powell’s assessment. This news comes as investors and policymakers grapple with the consequences of the trade war, highlighting the need for careful consideration of its potential impact on the economy.
Source: https://www.washingtonpost.com/business/2025/04/04/stock-market-fed-jerome-powell-trump-trade-war