Donald Trump tariffs would raise inflation, warns the Fed

Before the ads of tariff increases to various markets proposed by the president of the United States, Donald Trumpfrom the Federal Reserve (Fed) They anticipate that these policies will have an inflationary effect.

Jerome Powell, head of the Fed, said that “most likely” is that inflationary blows are seen in the economy with the tariffs of Trump. “It is not yet known what is going to happen,” he said prudence.

According to the president of the American Central Bank, “there is still a lot of uncertainty about what will happen, for how long what is already the level of the United States tariffs towards the imports of giants such as China, Canada and Mexico.

“Most likely, some of that breaks through; It will affect exporters, importers, retailers and, to some extent, consumers, and we will see what happens ”, Powell said.

The banker added that despite the high levels of uncertainty “the United States economy remains in a good position.”

These tariff policies of Trump limit the margin of action of the Federal Reservewhich has remained between 4.25% and 4.5%. The last reduction occurred 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

You may be interested in Donald Trump:

• Fed’s hierarchy is said “more cautious” about the fight against inflation in the US.
• US GDP is still solid while inflation accelerated at the end of 2024
• How to protect your savings from Trump’s commercial war and global inflation?
• Little by little, the Fed prepares for Trump’s economic policy impact