Jerome Powell warns Trump's tariffs could jeopardise Fed's inflation and unemployment targets

Speaking at the Economic Club of Chicago

Federal Reserve chair Jerome Powell has warned that US President Donald Trump’s tariffs will likely cause a temporary rise in inflation and unemployment rates, as the central bank works towards keeping both figures under control.

Speaking at the Economic Club of Chicago on Wednesday (16 April), Powell said the inflationary pressures could "also be more persistent" and added that avoiding this outcome will be subject to their size. Fed signals 'difficult trade offs' ahead amid persisting inflation "The administration…is implementing significant policy changes and particularly trade now is the focus," the Fed chair said. "The effects of that are likely to move us away from our goals. Unemployment is likely to go up as the economy slows in all likelihood and inflation is likely to go up as tariffs find their...