Powell warns: Trump's tariffs bring the USA to inflation clip!

Powell warns: Trump's tariffs bring the USA to inflation clip!

Vienna, Österreich - US Federal Research Center Jerome Powell is currently concerned about the United States' economic growth. In a speech at the Economic Club of Chicago, he describes the customs policy of US President Donald Trump as a potential trigger for higher inflation and slower economic growth. According to vienna.at , the already announced tariff increases exceed the worst expectations of the Federal Reserve, which means that there is an increasing risk of the economy and the stability of the market.

powell warns that the tariffs may lead to a temporary increase in inflation, which can develop into stubborn inflationary effects. He emphasizes the need to prevent a continuous inflation process and expresses that uncertainty in the current economic situation significantly difficult. This is made by analysis by bostonfed.org confirmed.

expectations for the Federal Reserve

The next key reserve decision is pending in May, and the general expectation is that the key interest rate will not be changed at this session. President Trump has urged Powell to reduce the high interest rates, which could cause a conflict -loaded topic within the Federal Reserve. Powell and his colleagues agree that they may have to make difficult decisions in order to weigh between a healthy labor market and stable inflation rates, which in the past already led to market turbulence, such as nyTimes.com reported.

Powell's statements already led to a decline in stock markets, with the S&P 500 fell by about 2.5 percent, while the value of US state bonds rose. Furthermore, the value of the dollar has decreased compared to other main currencies, which causes additional concerns about the stability of the American economy.

long -term consequences of tariffs

The persistent concerns about the economy show that customs policy could not only have immediate but also long -term consequences for inflation. Data analyzes indicate that considering demand and offer factors could lead to accelerated inflation of almost 8 percent, a clear indication that the Federal Reserve may be significantly missing in the near future.

POWELL and his colleagues are faced with the challenge of managing the current circumstances and at the same time maintaining the basic principles of a stable economy. The uncertainties caused by Trump's trade policy could be a permanent burden on the economy, since the market has to adapt to the new conditions.