#PowellRemarks *Fed Reacts to Trump's New Tariffs**

- **Jerome Powell:** Tariffs are **“larger than expected”** with potentially **severe economic impact**.

- **Main Concerns:**

- **Higher inflation**

- **Slower economic growth**

- **Long-term inflationary pressure**

- **Stock Market:** U.S. markets have **dropped 10%** since tariff announcement.

- **Monetary Policy:**

- Fed is **not rushing** to make changes.

- Will **monitor economic effects** closely.

- **China’s Response:**

- **34% tariffs** on U.S. goods.

- **Export restrictions** on key minerals.

- **Overall Risk:** Rising fears of **stagflation** — a mix of inflation and economic slowdown.