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Powell: The impact of tariffs has been much greater than expected so far

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2025-05-07 18:42:47
Federal Reserve Chairperson Jerome Powell said survey respondents pointed to tariffs as a major factor driving inflation expectations. The impact of tariffs has so far been much larger than expected. If the sharp increase in tariffs as announced persists, there will be higher inflation and lower employment. Avoiding sustained inflation will depend on the size, timing and inflation expectations of tariffs.
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