Fed Chair Powell Warns Tariffs Will Fuel Inflation and Slow Growth: Economic Outlook and White House Response
Introduction
Federal Reserve Chair Jerome Powell delivered a stark warning in a closely watched speech at the Economic Club of Chicago, cautioning that President Donald Trump’s sweeping tariff hikes are “significantly larger than anticipated” and will likely result in higher inflation and slower economic growth. Powell’s remarks, which come amid heightened market volatility and rising concerns about the U.S. economic outlook, underscored the challenges facing the central bank as it navigates the fallout from dramatic shifts in trade, fiscal, and regulatory policy. The White House responded to Powell’s comments with sharp criticism, intensifying a public clash between the administration and the nation’s top monetary policymaker.
