Powell Speaks On Trump Tariffs

Federal Reserve Chairman Jerome Powell issued a warning on Wednesday that new tariffs under President Trump’s economic policies could make it harder for the central bank to lower inflation.

While Powell did not mention Trump directly, he told reporters that import taxes could slow economic progress and increase price pressures.

“With tariff-related inflation, further progress may be delayed,” Powell said.

Federal Reserve Holds Interest Rates Amid Inflation Concerns

Following a two-day meeting in Washington, the Federal Open Market Committee (FOMC) decided not to cut interest rates at this time. This decision aligns with expectations, given the ongoing economic uncertainty and the effects of Trump’s bold America-first trade policies.

Powell noted that inflation trends remain complex. According to a recent New York Federal Reserve survey, many Americans feel uneasy about their financial future. Meanwhile, the University of Michigan’s consumer expectations index dropped significantly, showing that inflation concerns are growing among households.

Small businesses are also voicing concerns. A recent National Federation of Independent Business (NFIB) survey indicates that business owners are worried about rising costs and economic instability.

Inflation Trends: What You Need to Know

Latest reports from the Labor Department show that:

✅ Consumer Price Index (CPI): Inflation is up 2.8% year-over-year.
✅ Personal Consumption Expenditures (PCE) Index: Inflation stands at 2.5%.

With rising prices affecting groceries, energy, and everyday goods, many economists believe tariffs may play a role in price increases. Powell acknowledged that it’s difficult to determine how much of this inflation is caused by tariffs versus other economic factors.

Federal Job Cuts: Are They Affecting the Economy?

Another key policy shift under the Trump administration is federal government layoffs. Powell commented on this issue, stating that, while these job cuts are impacting individuals and certain communities, they have not yet significantly altered the national economy.

“The layoffs are meaningful for those affected, but at the national level, their impact is still limited,” Powell said.

What This Means for Your Finances

📌 Higher prices on goods and services may persist throughout the year.
📌 Interest rates remain steady, affecting savings accounts, mortgages, and loans.
📌 Economic uncertainty continues, making budgeting and financial planning essential.

As the Federal Reserve monitors inflation, Americans must stay informed and make smart financial choices to protect their wealth.