MARKET ALERT: #Powell Warns of Tariff Fallout

Washington, D.C. | Federal Reserve Chair Sounds Alarm on Economic Risks

In a pivotal policy statement, Federal Reserve Chair Jerome Powell cautioned that the recently announced sharp tariff increases could have serious economic consequences. If these tariffs remain in place, Powell warned, the U.S. may see a rise in inflation and a drop in employment.

Key Quote:

> “If large increases in tariffs as announced are sustained, we will likely see higher inflation and lower employment.”

#Powell delivered this warning during a live press conference that triggered an immediate market reaction. The S&P 500 (SPX) fell by 15.38 points (-0.27%) as investors responded to growing concerns about inflation and economic headwinds.

What It Means:

Inflation Threat: Higher tariffs raise the cost of imports, which could lead to further increases in consumer prices, intensifying pressure on household budgets.

Job Market Strain: Rising input costs may force businesses—especially those dependent on imports—to slow hiring or cut jobs.

Market Uncertainty: Volatility spiked following Powell’s remarks, with sharp intraday movements in major indexes reflecting investor unease.

Wider Implications:

Powell’s comments suggest the Fed may adopt a more cautious stance as it navigates persistent inflation and early signs of labor market weakness. The warning underscores potential challenges ahead for policymakers, traders, and businesses.

Expect continued volatility and strategic shifts as the situation evolves. More updates to follow.