Federal Reserve Chair: Trade War May Hinder Inflation Control

Federal Reserve Chairman Jerome Powell stated that tariffs and the ongoing trade war between the United States and other countries, especially China, could weaken the central bank's ability to contain inflation and support U.S. economic growth.

Powell predicted rising inflation and a slowdown in economic growth, noting that it is unclear which of the two should receive more focus given the trade uncertainty.

He emphasized that the Fed's current stance is to wait for greater clarity before making any decisions regarding monetary policy.

Powell also believes that the economy will move away from the goals of full employment and preventing inflation from rising, as the impact of tariffs on inflation depends on several factors, including the size of the tariffs and the time it takes for their effects to manifest in the economy