Powell: Trump has imposed tariffs far more than the Federal Reserve expected
2025-04-04 16:27:45
On April 4 local time, Federal Reserve Chairperson Powell said that the Federal Reserve is shocked by the scope of tariffs imposed by US President Trump, which means that the impact of tariffs on the economy will be greater than previously thought. Powell said that it is clear that the increase in tariffs will be much larger than expected, and the economic impact may also be the same, including rising inflation and slowing economic growth. The scale and duration of these effects are still uncertain. It is reported that Powell has previously said that the inflationary effect of tariffs is likely to be "temporary". Powell would not say whether he believes the US economy is headed for recession, but he acknowledged that the uncertainty of trade policy has put pressure on businesses, and a growing number of forecasts show that the risk of recession is rising. Powell said he planned to serve out his full term, which ends in May 2026.
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