The Federal Reserve and the Impact of Tariffs
On May 8, Federal Reserve Chairman Mr. Powell expressed concerns about the impact of the tariffs imposed by President Trump on April 2. According to him, the current tax level "far exceeds expectations" and could lead to a decline in economic growth. This could result in high long-term inflation.
If these high tariff levels continue to be implemented, inflation and unemployment rates may increase, while economic growth may slow down. Although the impact on inflation may only be temporary, it could also potentially persist. Mr. Powell noted that the risk of rising inflation and unemployment will certainly increase if tariffs remain at current levels.
He also stated that, given the scope and scale of tariffs, the Federal Reserve's ability to achieve its inflation and unemployment goals may be delayed until next year. This creates significant challenges in balancing important macroeconomic factors, especially when considering the impact of policy on cryptocurrencies.
Source: https://tintucbitcoin.com/powell-lo-ngai-thuong-mai-lam-cham-tien-do-cua-fed/
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