US Federal Reserve warns of inflation, unemployment from Trump tariffs

It’s not just foreign cars that will go up; all the American cars, their prices are going to go up, too,

he said, adding

Jerome Powellfed Chair

CUT INTEREST RATES, JEROME, AND STOP PLAYING POLITICS!"

added Trump, who first nominated Powell to run the Fed, before turning against him during his first term

I fully intend to serve all of my term,

he said during the Virginia event

Fast-forward a year from now, the uncertainty should be much lower,

he noted

We are well-positioned to wait for greater clarity before considering any adjustments to our policy stance. It is too soon to say what will be the appropriate path for monetary policy,

he said

Powell’s comments support our view that the Fed is not poised to rush in and cut interest rates anytime soon, despite President Trump’s call right ahead of Chair Powell’s comments to do so,

Nationwide Chief Economist Kathy Bostjancic said

Jerome Powellfed Chair

We are closely watching this tension between the hard and soft data. As the new policies and their likely economic effects become clearer, we will have a better sense of their implications for the economy and for monetary policy,

Powell said

Jerome Powellfed Chair

While uncertainty remains elevated, it is now becoming clear that the tariff increases will be significantly larger than expected,

said Powell

Jerome Powellfed Chair

This would be a PERFECT time for Fed Chairman Jerome Powell to cut Interest Rates. He is always "late," but he could now change his image, and quickly. Energy prices are down, Interest Rates are down, Inflation is down, even Eggs are down 69%, and Jobs are UP, all within two months - A BIG WIN for America. CUT INTEREST RATES, JEROME, AND STOP PLAYING POLITICS!"

Ahead of Powell's remarks on Friday, President Trump posted on Truth Social

Jerome Powellfed Chair

While tariffs are highly likely to generate at least a temporary rise in inflation, it is also possible that the effects could be more persistent,

Powell said

He is always ‘late’, but he could now change his image, and quickly,

Trump wrote

Jerome Powellfed Chair

It feels like we don’t need to be in a hurry” to change rates

Powell said

Jerome Powellfed Chair

Our obligation is to keep longer-term inflation expectations well anchored and to make certain that a one-time increase in the price level does not become an ongoing inflation problem,

Powell said in prepared remarks

The same is likely to be true of the economic effects, which will include higher inflation and slower growth,

he said

The Fed is in a tough spot with inflation set to accelerate and the economy poised to slow,

Kathy Bostjancic, chief economist at Nationwide, said in an analyst note Friday

This would be a perfect time for Fed Chairman Jerome Powell to cut interest rates,

Trump wrote

We face a highly uncertain outlook with elevated risks of both higher unemployment and higher inflation,

he said at an event just outside Washington, DC

Philip Jeffersonfed Vice Chair

If uncertainty persists or worsens, economic activity may be constrained,

Fed Vice Chair Philip Jefferson said Thursday at an event in Atlanta

We expect a significant inflationary impulse that...will likely fuel further and broader rises in inflation expectations and actual inflation itself,

they wrote

The problem for the Fed is that they're going to have to be very reactive,

said Jonathan Pingle, chief U.S. economist at UBS