Tariffs threaten the economy!
In a striking statement, Federal Reserve Chairman Jerome Powell warned of serious repercussions from the tariffs proposed by former President Donald Trump, asserting that their implementation could deal a heavy blow to the American economy.
1️⃣ Rising inflation 📈
2️⃣ Slowing economic growth 🐢
What does that mean?
Trump's idea of increasing tariffs (i.e., taxes on imported goods) may seem like a way to protect American companies 🇺🇸,
but Powell warns that it could make everyday goods more expensive 🛒💸 – and that's inflation.
And when prices rise too much, people spend less, companies scale back their activities, and the entire economy slows down 🧊.
The Federal Reserve's dilemma:
Powell is walking a tightrope 🎪 as he tries to lower inflation without causing an economic recession.
Adding tariffs could disrupt this balance ⚖️.
What to watch for?
📅 Markets will be closely monitoring.
💬 Investors are listening intently to every word Powell says.
📉 Any sign of rising inflation = more action from the Fed (like raising interest rates).
Stay informed – the road ahead may be bumpy!