Powell: Tariffs Are Fueling Economic Uncertainty and Holding Back Rate Cuts
| FOR IMMEDIATE RELEASE June 25, 2025 Contact: [email protected] |
Powell: Tariffs Are Fueling Economic Uncertainty and Holding Back Rate Cuts
With the Trump Administration’s across-the-board tariffs continuing to disrupt prices and create economic uncertainty, Federal Reserve Chair Jerome Powell delivered a stark warning this week: inflation from Trump’s trade policies is coming and soon. Testifying before Congress, Powell said
“All forecasters are expecting pretty soon that some significant inflation will show up from tariffs now,”
NPR | Fed Chair Jerome Powell says tariff uncertainty warrants caution on rate cuts
“Many businesses might still be working through inventories that got shipped before the tariffs went into effect, Powell also said, adding that summer data should begin to show whether — or how much — consumer prices rise to cover new costs for U.S. importers.”
PYMNTS | Tariffs Likely to ‘Weigh on Economic Activity’ Fed Chair Says
“Increases in tariffs this year are likely to push up prices and weigh on economic activity,” Powell said.
He emphasized the potential for either short-lived or more persistent inflation, making clear the Fed is taking a cautious stance until more data becomes available.
Wall Street Journal | Powell Reaffirms Wait-and-See Posture on Rate Cuts
Powell acknowledged the Fed would have likely continued to cut rates “if not for concerns that higher tariffs might derail the central bank’s yearslong fight to defeat inflation.”
POLITICO | As Trump fumes, Powell tells lawmakers he’s in no rush to lower rates
“But [Powell] said he remains concerned about how trade policies may lead to higher inflation, particularly with a spate of economic surveys reflecting broad concern about the effect of tariffs.”
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