#DiversifyYourAssets The President of the Federal Reserve, Jerome Powell, stated on Friday that the government's extensive new tariffs under Trump are likely to lead to higher inflation and slower growth for the U.S. economy.

Powell expressed that the tariffs, and their likely impacts on the economy and inflation, are "significantly greater than expected." He also remarked that import taxes are likely to lead to "at least a temporary increase in inflation," but added that "it is also possible that the effects could be more persistent."

"Our obligation is... to ensure that a one-time increase in the price level does not become a continuous inflation problem," Powell stated during remarks at a conference of the Society for the Advancement of Business Editing and Writing.

Powell also emphasized that the total impact of the tariffs on the economy is still unclear, and the Fed will remain on the sidelines until it has more clarity on the economy. He acknowledged that many businesses have said they are postponing new investments until they have a better idea of the impact of the tariffs.

"There is a lot of waiting and watching, even on our part," Powell said during a Q&A session. "And that seems to be the right thing to do in this period of uncertainty."

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