“Likely to generate inflation”: Fed Chair Powell paints bleak picture of US under Trump tariffs

Federal Reserve Chairman Jerome Powell did not give in to President Donald Trump’s pressure to lower key interest rates during a recent press conference. Powell cited economic uncertainty stemming from Trump’s tariff plan as the reason for maintaining the rates. He expressed concerns that the proposed tariffs could lead to inflation, economic slowdown, and increased unemployment. Powell acknowledged the challenges in deciding the appropriate course of action due to the uncertainty surrounding the situation. Despite facing criticism from the Oval Office, Powell emphasized the importance of the Fed’s independence and his commitment to making decisions based on economic factors rather than political pressure.