Trump's tariffs are expected to increase inflation and slow economic growth

From Quiver Quantitative: 2025-04-04 22:10:00

Federal Reserve Chair Jerome Powell warns that President Trump’s new tariffs are larger than expected, leading to higher inflation and slower economic growth. The Fed must navigate strong employment data and weakening business sentiment, balancing low inflation and maximum employment. Markets have reacted negatively to the tariff announcements, with stock markets declining sharply. Powell notes that higher tariffs will likely increase inflation and impact growth, requiring careful monitoring before any policy adjustments. Investors are advised to watch for potential impacts on growth and inflation as global trade tensions continue to pose risks to economic stability.



Read more at Quiver Quantitative: Trump’s Tariffs to Fuel Inflation and Slow Growth