Powell says tariffs will cause inflation to rise, could be persistent

Federal reserve chair Jerome Powell: On Friday, President Donald Trump’s tariffs will probably increase inflation and slow economic growth, saying that the Central Bank will do so much to keep long-term inflation low.

President Trump On Wednesday, he missed tariff plans, which prompted the sale of the stock market and who pushed retaliation to US trading partners. The S & P 500 fell on Friday by about 4% and more than 6% in the last five trading days, while Dow Jones Industrial Meamenter has entered the correction area more than 10% in December.

In his speech on Friday, he said in his speech that it is difficult to predict the impact of rates of inflation and other economic indicators. ”

“While uncertainty remains raised, it is now clear that the tariff is larger than expected, and the same will probably be the growth of economic consequences and slow growth. “The size and duration of these effects remains uncertain.”

China is missed by 34% of US import tariffs

The Fed Chair Jerome Powell said tariffs are likely to least add inflation at least at least. (Anna MoneyMaker / Getty Images / Getty Images)

Powell is sad that while “Tariffs probably generally creates temporary Rising inflationIt is also possible that the consequences can be more stubborn. ”

“Avoiding it will depend on the maintenance of long-term inflation expectations. “Our commitment has anchor expectations of longer-term inflation and make sure that the price level is not a continuous problem of inflation.”

Inflation is persistently remained at a 2% Fed Target Pump, until the last consumer price index (CPI), which comes by 2.8% of February, and the preferred meter of the Central Bank Personal consumption costs (PCE) the index is 2.5%.

Trump calls Fed’s Powell to reduce interest rates and “stop politics”

President Trump opened the spy tariffs as part of his “Liberation Day” announcement on April 2. (Chip Somodevilla / Getty Images / Getty Images)

Powell asked during the question and answer session followed by his speech in society for writing a business editing and annual conference in Virginia Fed’s role During the financial markets, the economic uncertainty comes from political policy.

“We are guided by analyzing and cautiously thinking and discussions and the merits of things. We try to stay as far as we can from the political process, we do not look at such political cycles or such things.

What is Trump Tariffs on Rising Prices?

Tariffs are taxes of imported goods, which are paid by importing companies, which often transfer higher costs to consumers at higher prices. (Photographer, Sam Wolfe / Bloomberg Via Getty Images / Getty Images)

“We do not want to be a wider discussion about the wisdom of politics that have not been handed over to us. We are not responsible Commercial policyImmigration policy, fiscal policy, “he said.

“I like to think that over time we are a source of calm, rational analysis and stability,” Powell added. “Business in which we are in Financial and macroeconomic stability It is really our goal for the public. “

Get Fox Business Go by clicking here

The next Fed Policy Meeting is in May, and Powell said that the central bank cuts interest rates. “It simply came to our notice then.”