Federal Reserve Chairman Jerome Powell stated that President Donald Trump's new tariffs are "beyond expectations," and their economic impact—including rising inflation and slowing economic growth—could be even more severe.
Powell emphasized that the Federal Reserve is facing an uncertain outlook, as the new tariff policies may exacerbate long-term inflationary pressures. Meanwhile, the U.S. stock market has fallen 10% since Trump announced the new round of tariffs.
Although the Federal Reserve is not in a hurry to adjust monetary policy, it will closely monitor the impact of these tariffs. At the same time, China has imposed a 34% tariff on U.S. goods and restricted exports of key minerals, further escalating trade tensions.
Federal Reserve officials warned that inflation risks are rising, and signs of slowing economic growth are becoming increasingly apparent, raising concerns about stagflation.
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