Fed chair says Trump tariffs could make inflation worse as US stocks slide further | Trump tariffs

US Federal Reserve President Jerome Powell warned that Donald Trump’s tariff would generate a “difficult scenario” for the central bank and is likely to increase inflation.

Powell’s comments came on Wednesday, and the US stock markets have already shook new trade restrictions on the chips designer Nafidia. The sale was picked up when Powell spoke to the Chicago Economic Club.

The S&P 500 has ended 2 % per day, and the NASDAQ technology index decreased by 3 % and Dow Jones 1.7 % decreased.

Powell said: “The new administration is in the process of implementing major changes in politics in four distinct areas: trade, immigration, financial policy and organization. These policies are still developing, and their effects on the economy remain very uncertain.”

Powell said American economy It was in a good position, but added that the Trump tariff would likely cause “a temporary rise in inflation. The inflationary effects could be more stable.”

Nafidia, the California company at the heart of the revolution in artificial intelligence technology, has lost billions of dollars in its market value in the opening bell, with its shares decreased by 8.5 % by early in the afternoon.

The sale, which has spread to the semiconductor makers in Asia and Europe, comes after Nvidia said that the Trump administration has The H20 chip is bound in China By new licensing requirements.

The company is now expecting to report 5.5 billion dollars (34.1 billion pounds) in the financial quarter that ends on April 27, and covers the cost of stock licenses of chips and related sales obligations.

The American restriction will also reach the Micro Micro Advanced processor (AMD). Her shares decreased by 6.5 % because they expect to reach 800 million dollars due to the new base.

In Asia, South Korean semiconductor companies such as Samsung Electronics and SK Hynix decreased by about 4 % overnight, and the semiconductor manufacturer in Taiwan decreased by 2.5 %.

Meanwhile, in Europe, the shares of ASML technology decreased by 5.2 % as its CEO, Christophe Foucait, that the definitions “increased the uncertainty in the total environment.” The Dutch company, which produces stone printing machines used to make chips, told 3.94 billion euros in the first financial quarter, about one billion euros less than what investors expected.

So far, the chips industry has been exempted from the 10 % definitions that the United States has imposed since April 2. The United States government has historically built regulations to limit the arrival of the Chinese to advanced chips – including Joe Biden, as it raced to excel in artificial intelligence. But the Trump administration was The road paves the way for more fees on the sector.

Global stocks were also wounded by a warning from the World Trade Organization. Trump said International trade definitions will be sent to the opposite of this year And the pressure of global economic growth. While the World Trade Organization has previously expected the merchandise trade by 2.7 % this year, it now expects a 0.2 % decrease.

There were some positive indicators throughout the market, with a rise of 1.4 % in US retail sales in March higher than expected. Then compared to an increase of 0.2 % in February, according to the American Statistical Office, although this may indicate that consumers were picking the goods before the definitions were carried out.

Oil prices also rose on Wednesday amid the hopes of commercial talks between China The United States, and a report that Iraq is planning to reduce oil production in April. Brent crude rose 84 cents, or 1.3 %, to $ 65.49 a barrel, while American crude rose by a similar amount to $ 62.12 a barrel.

If there are trade talks with China, it will include the country New international trade negotiator. Beijing unexpectedly announced on Wednesday that Lee Chenggang will take over the role of veteran trade Caesar Wang Shwin. No reason to change was given, although it came amid a broader amendment to the Chinese government.

In the United States, California launched a legal challenge for Trump’s definitionsHe accused the head of overcoming his authority and threatening trade in the state. The lawsuit was filed by the governor of California, Gavin News, and its public prosecutor, Rob Punta.

Also on Wednesday, Trump posted on his Truth Social platform that he would attend a commercial meeting with Japanese officials and cabinet secretaries.

“Japan is coming today to negotiate DefinitionsHe wrote the cost of military support and “commercial fairness”. “I will attend the meeting, along with the treasury and trade trustees. We hope something is well (wonderful!) To Japan and the United States of America!”

Japan had a 24 % tariff rate on its exports to the United States, although most of Trump’s “mutual” definitions were stopped for 90 days last week. However, a 10 % global rate remains in place, as well as a 25 % duty to sell Japanese cars to Americans.