April 17, 2025.
Fed Chair Warns About Tariffs
At the Chicago Economic Club event, Federal Reserve Chair Jerome Powell warned that tariffs are worsening the U.S. economic situation. He believes President Trump's tax policies could lead to slower growth, rising unemployment, and higher inflation, creating an unprecedented supply shock. Powell emphasized that the Fed has never faced a situation where its dual mandates conflict in the past 50 years. However, he noted that the U.S. economy remains stable, and the Fed will need more data before adjusting its policies.
The changes in tariff policy are having widespread effects on many companies, including Jito (JTO), Manta (MANTA), and Dymension (DYM). Specifically, JTO, which relies on imported raw materials, may face significant cost increases. The 25% tariffs on aluminum and steel could raise production costs, reduce profits, and negatively impact competitiveness in the market.
MANTA, specializing in financial technology, may experience a decline in demand as consumers and businesses tighten spending due to rising inflation. As prices increase, customers' purchasing power diminishes, which could lead to reduced revenue for MANTA, particularly in a highly competitive market.
Meanwhile, DYM, a company in the blockchain technology sector, may also experience pressure from reduced investment. When investors are concerned about economic prospects, they may become more cautious about funding new tech projects. This uncertainty could slow down DYM's product development and rollout, affecting the company's expansion plans.
To navigate this unstable economic environment, all three companies will need to adjust their business strategies. They may consider diversifying their supply chains, exploring new markets, or investing in technology to optimize production processes. Proactive risk management could help JTO, MANTA, and DYM maintain their competitive positions and overcome the challenges posed by the new tariff policies.