#PowellRemarks šØšØ Fed Chair Powell Drops a Bomb on Trump Tariffs and Inflation šØšØ
In a tense press conference in Washington, Federal Reserve Chair Jerome Powell did not hold back: Trump tariffs *have already* raised prices ā and this is just the beginning.
Powell warned that U.S. consumers will bear the burden, as businesses throughout the supply chain try to avoid costs. Inflationary pressures are building rapidly, and Powell pointed directly to tariffs.
"We are starting to see some effects," he said, adding that tariffs take time to filter through the economy. But don't be mistaken ā they *will* hit the wallet. From producers to importers to retailers, no one wants to pay. But someone will pay. And that person is likely you, the consumer.
Even with rising inflation, the Fed kept interest rates steady at 4.25%-4.5%. They still plan two cuts for 2025, but Powell was very clear: dot plots are not promises. They are forecasts.
"No one holds this interest rate path with great confidence," he said. Translation? Anything can happen.
Despite the pressures, Powell said the U.S. economy is still defying the odds ā strong, resilient, and unshakeable... for now. But with tariffs raising inflation, the calm may not last long.