Jerome Powell warns of long term inflation if Trump settles on higher tariffs indefinitely

Policies' economic impacts ‘uncertain’

Chair of the US central bank Jerome Powell has heeded further caution over the inflationary impact of President Donald Trump’s tariff agenda with less than two weeks on the 90-day ‘pause’ clock.

Presenting the semi-annual monetary policy report to the Congress, Powell said that despite the "elevated uncertainty" overshadowing the US economy at present, it was in a "solid position" with the unemployment rate low and labour market "at or near maximum employment". The unemployment rate has held steady the past couple of months, but many experts have warned that the full impact of Trump's ‘Liberation Day' tariff agenda is yet to come through in the data. Fed decision to hold rates 'inevitable' amid global trade uncertainty Inflation has come down since the 2022 double digit hi...