Trump tariffs partly to blame for higher prices: Fed Chair Powell
Source: ABC News
Federal Reserve Chair Jerome Powell on Wednesday said President Donald Trump’s tariffs are partly to blame for price increases, leveling the criticism minutes after the central bank announced its decision to hold interest rates steady.
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Even as the Fed left its main policy lever unchanged, the central bank predicted weaker year-end economic growth and higher inflation than it had in a December forecast. By the end of 2025, inflation will stand at 2.8%, slightly higher than a prior prediction of 2.5%, the Fed said.
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Speaking in Washington, D.C., on Wednesday, Fed Chair Jerome Powell said the economy faces uncertainty, pointing to the Trump administration's potentially "significant policy changes" regarding trade, immigration, fiscal policy and regulation.
"It's the net effect of these policy changes that will matter for the economy and for the path of monetary policy," Powell said. "Uncertainty around the changes and their effects on the economic outlook is high."
Read more: https://abcnews.go.com/Business/fed-set-make-interest-rate-decision-outbreak-trade/story?id=119905993
Powell also admitted that tariffs were to blame for a "good part" of price increases. Kraskov is going to blow a gasket.
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