Powell "Tariff Policy Continuation Could Lead to Inflation Rise and Employment Decrease"

JH Kim

Summary

Jerome Powell, Chairman of the U.S. Fed, stated that if large-scale tariff increases continue, inflation rise and employment decrease are expected.
The uncertainty of the economic outlook is expanding, and FOMC members have determined that the risks of unemployment and inflation are increasing.
Tariffs and trade policies have a significant impact on GDP and economic data, leading to long-term economic uncertainty.

On the 7th (local time), according to CNBC, Jerome Powell, the Chairman of the U.S. Federal Reserve (Fed), stated, "Respondents to the survey cited tariffs as a major factor raising inflation expectations. The tariffs were much larger than previously anticipated. If the announced large-scale tariff increases continue, inflation will rise and employment will decrease."

He continued, "Economic outlook uncertainty has further expanded. FOMC members have determined that the risks of unemployment and inflation have increased," adding, "Tariffs and trade policies have significantly shaken GDP and various data. It is still unknown what impact the economic uncertainty caused by these policies will have in the future."