On April 4, 2025, Federal Reserve Chairman Jerome Powell delivered a speech at the Business Development and Writing Association conference in Arlington, Virginia. During his remarks, Powell expressed concern that the new tariffs announced by the Trump administration could be larger than expected, potentially leading to rising inflation and a slowdown in economic growth in the United States.

Powell clarified that these tariffs are likely to cause a temporary increase in inflation, with the possibility that the effects could be more sustained if long-term inflation expectations are not well anchored. He reaffirmed that the Federal Reserve is committed to maintaining price stability and full employment, and will continue to monitor incoming data and economic developments carefully before making any decisions related to monetary policy.

These statements come at a time when global financial markets have experienced a notable decline due to concerns over escalating trade wars.