The president of the Federal Reserve (FED) of USAJerome Powell, said Friday that “everyone is predicting some inflationary effect because of tariffs” taxes by the government of President Donald Trump.
In his speech at the Monetary Policy Forum, the president of the Central Bank recognized as “most likely” that the inflationary effects are reflected in the economy. However, he pointed out that it is still a uncertainty. “It is not yet known what is going to happen.”
“We are in a stage in which we still have a lot of uncertainty about what will happen, for how long, at what level. We will have to wait to see all that. But most likely some of that breaks through; it will affect the exportersto the Importersto retailers and, to some extent, consumers, and we will see what happens, “Powell said.
Trump: tariff threats
As is known, since his arrival at the White House, President Trump, he has later threatened to impose tariffs on neighboring countries such as Canada and Mexico, as well as China. Although then some of those taxes have temporarily reverted, the possibility of re -applying them are not eliminated.
“The new administration is in the process of implementing significant policy changes in four different areas: trade, immigration, fiscal policy and regulation,” added the president of the Fed.
Regarding Trump’s economic plans, they don’t seem to generate concern to Powell. “Despite the high levels of uncertainty, the US economy is still in a good position,” Powell said and added that is waiting for a “greater clarity” about Trump’s policies before making the next decision about the interest rates (The last descent, a quarter quarter, announced it in November 2024).
“The inflation It has dropped a lot since its peak of mid -2022, greater than 7%, without (which has been) an abrupt increase in unemployment, a historically unusual and very welcome result. While progress in inflation reduction has been widespread, recent figures are still something above our 2%goal, “Powell said.
With EFE information
Source: Larepublica
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