Fed Chair: Inflation Is Down But He’s Focusing on What Might Happen

Fed Chair Jerome Powell said Friday that the Trump administration’s expansive new tariffs will likely lead to higher inflation and slower growth.

Powell said that the tariffs, and their likely impacts on the economy and inflation, are “significantly larger than expected.” He also said that the import taxes are “highly likely” to lead to “at least a temporary rise in inflation,” but added that “it is also possible that the effects could be more persistent.”

“Our obligation is to … make certain that a one-time increase in the price level does not become an ongoing inflation problem,” Powell said in remarks delivered in Arlington, Virginia.

He also said inflation is back down after Bidenflation.

The tariffs are expected to cause short-term issues but long-term gains. Don’t panic.

President Trump calls on Fed Chairman Jerome Powell to cut interest rates as the 10 Year Treasury has fallen below 4%. He’s always late in addressing issues.

He wrote on Truth Social:

“This would be a PERFECT time for Fed Chairman Jerome Powell to cut Interest Rates. He is always “late,” but he could now change his image, and quickly. Energy prices are down, Interest Rates are down, Inflation is down, even Eggs are down 69%, and Jobs are UP, all within two months – A BIG WIN for America. CUT INTEREST RATES, JEROME, AND STOP PLAYING POLITICS!”

We all know Powell won’t do it.

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