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

Jerome Powell I did not offer Donald Trump That is, the recession during his second term, but it certainly gives the president a sufficient rope.

the Federal Reserve The president again refused to reduce the main interest rates as economic uncertainty about Trump Tariff The slower American economy. Powell pointed out that the same uncertainty is like a region to maintain fixed rates during a press conference on Wednesday.

The widespread definitions that President Trump promised can cause a nightmare scenario where prices and economics rise, a process that was usually called “recession” during the crises that shocked the global economy in the 1970s. The logic of the direct federal reserve is placed to reduce borrowing costs when the economy is struggling and raised to face rapid inflation in a dual association by the virtual, and Powell admitted the same.

“It is not clear at all what we should do,” said Powell. “There is a lot of uncertainty.”

Powell presented a dark idea of ​​the future under Trump’s tariff as it is proposed, saying that the United States can see “an increase in inflation, slowdown in economic growth, and an increase in unemployment.”

Powell added that the inflationary effects of definitions can be an increase in price once as a reaction to the new duties or a “ongoing” problem.

“Avoiding this result will depend on the size of the tariff effects [and] In the time it takes to move fully to the prices, “Powell participated.

He made him stumbling Powell about interest rates in the Oval Office. The Federal Reserve has been prepared to be independent of the White House, and it does not work with Powell with pleasure Stereotype From Trump.

In April, and The president said The end of the Powell term “cannot come quickly enough” and it seemed confident that he could get the president to evacuate his position.

“He will leave,” Trump told reporters. “I am not happy with him. If you want to go out, you will come out of there at a real speed. Believe me.”