Federal Reserve Chair Jerome Powell warned Wednesday that tariffs imposed by President Donald Trump force the Fed to face conflicting goals, according to CNBC. In a speech to the Economic Club of Chicago, Powell said the central bank may have to choose between fighting inflation and supporting growth. The Fed aims to maintain price stability and full employment, but economists warn that tariffs pose risks to both goals despite an inconsistent link to inflation. Powell said tariffs are likely to cause at least a temporary rise in inflation, with longer-term effects depending on their magnitude, duration, and the stability of inflation expectations.
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00:00It's Benzinga bringing Wall Street to Main Street.
00:02Federal Reserve Chair Jerome Powell warned Wednesday that tariffs imposed by President
00:06Donald Trump forced the Fed to face conflicting goals, that according to CNBC. In a speech to
00:11the Economic Club of Chicago, Powell said the central bank may have to choose between
00:15fighting inflation and supporting growth. The Fed aims to maintain price stability and full
00:21employment, but economists warn that tariffs pose risks to both goals despite an inconsistent link
00:26to inflation. Powell said tariffs are likely to cause at least a temporary rise in inflation
00:31with longer-term effects depending on their magnitude, duration, and the stability of
00:36inflation expectations. For all things money, visit Benzinga.com slash GSTV.