Powell: Tariffs to drive inflation up, jobs down in coming months

U.S. Federal Reserve Chair Jerome Powell s
| Photo Credit:
KEVIN LAMARQUE/Reuters

Federal Reserve Chair Jerome Powell said on Wednesday that trade policies pursued by the Trump administration will create challenges for the central bank to meet its job and inflation mandates this year.

The new trade policies represent significant change, Powell said in an appearance in Chicago.

“The effects of that are likely to move us away from our goals, so unemployment is likely to go up as the economy slows in all likelihood, and inflation is likely to go up as tariffs find their way” into the economy, Powell said. He added this will likely play out over the course of the year.

Published on April 16, 2025