Fed chair: Tariffs could hike inflation, but more details needed

(NewsNation) — President Donald Trump‘s latest tariffs are “likely to raise inflation in coming quarters,” though more details are needed before economic assessments can be made, U.S. Federal Reserve Chair Jerome Powell said on Friday.

Powell, in a speech at the Society for Advancing Business Editing and Writing’s annual conference, addressed the “Liberation Day” levies, calling them “significantly larger than expected.”

“And the same is likely to be true of the economic effects, which include higher inflation and slower growth,” Powell said.

He outlined that the current administration is implementing “substantial policy changes” in trade, immigration, fiscal policy and regulation.

“It is not our role to comment on those policies,” Powell said. “Rather, we make an assessment on their likely effects, observe the behavior of the economy and set monetary policy that best achieves our dual-mandate goals.”

Powell called the current labor market “broadly stable” and referenced a better-than-expected jobs report released Friday morning that had unemployment rising to 4.2%. Powell also pointed to overall drops in inflation as a sign of a steady economy.

Powell’s public appearance came as the tariffs continue to rock economic markets worldwide.

On Thursday, the U.S. saw the DOW, NASDAQ and S&P 500 dip to numbers last seen during the onset of the COVID-19 pandemic in 2020. Numbers have continued to drop on Friday.

Trump on tariffs, Jerome Powell’s next move

As top economists and analysts warn of a looming recession, Trump has remained rosy on his levies.

He told a reporter on Thursday, “I think it’s going very well.”

Trump has repeatedly compared the tariffs’ effect on the U.S. to a patient who has undergone an operation, essentially saying the country will recover eventually.

“It’s what is expected. The patient was very sick. The economy had a lot of problems,” Trump said. “It was a sick patient. It went through an operation.”

Ahead of Powell’s event, Trump on Truth Social directed Powell to cut interest rates.

“He is always ‘late,’ but he could now change his image, and quickly … CUT INTEREST RATES, JEROME, AND STOP PLAYING POLITICS!” Trump’s post reads in part.

Powell, who has led the Fed since 2018, was nominated by Trump during his first term.

NewsNation’s Kellie Meyer contributed to this report.