Federal Reserve Chair Jerome Powell is confronting conflicting pressures as Trump’s sudden tariff hikes threaten to both slow growth and raise inflation, according to The Wall Street Journal. Business leaders and investors warn the economy could slide toward recession, which would normally warrant rate cuts. But rising import prices from tariffs could accelerate inflation, limiting the Fed’s ability to ease policy. Analysts warn rate cuts may be ineffective given the structural nature of the uncertainty and inflationary pressures created by tariffs.
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00:00It's Benzinga bringing Wall Street to Main Street.
00:02Federal Reserve Chair Jerome Powell is confronting conflicting pressures
00:05as Trump's sudden tariff hikes threaten to both slow growth and raise inflation.
00:10That according to the Wall Street Journal.
00:12Business leaders and investors warn the economy could slide toward recession,
00:16which would normally warrant rate cuts.
00:18But rising import prices from tariffs could accelerate inflation,
00:21limiting the Fed's ability to ease policy.
00:24Analysts warn rate cuts may be ineffective given the structural nature of the uncertainty
00:28and inflationary pressures created by tariffs.
00:31For all things money, visit Benzinga.com slash GSTV.