Arlington:
Federal Reserve President Geom Powell said on Friday that the recent tariff launched by President Donald Trump has increased the risk of high unemployment and would cause inflation and increase.
Jerome Powell told about an incident in Virginia in the prepared comments, “It is now clear that the tariff growth will be much larger than expected.”
He said, “The economic impacts are likely to be true, including high inflation and slow growth,” he said it was “very soon” to consider changing American monetary policy.
Their comments suggest that the Fed is in a hurry to cut its benchmark borrowing rate from 4.25 and 4.50 per cent from its existing high levels, as it continues its struggle to bring inflation to its long -term two percent target.
Trump’s declaration at the beginning of this week of heavy levy against top trading partners has shaken global markets as investors have struggled with much more import cost on everything from shoes to shrimp.
But beyond the speech of Geom Powell on Friday, Donald Trump stressed in his true social account that his policy would not change despite the market’s response, and called Powell to work.
He wrote, “This would be a perfect time to cut interest rates for Fed Chairman Jerome Powell.” “He is always ‘late’, but he can change his image now, and quickly.”
“Stop playing interest rates, georomes, and politics!” Added to Trump, who first nominated Jerome Powell to run the fed before turning against him during his first term.
(Except for the headline, the story has not been edited by NDTV employees and is published by a syndicated feed.)
