In recent statements, Federal Reserve Chair Jerome Powell highlighted the significant economic risks associated with tariffs implemented by the Trump administration. He warned that these tariffs are likely to lead to increased inflation and stagnated economic growth, potentially causing the economic fallout to be larger than initially expected. Powell emphasized the need for a cautious approach, indicating that the Fed is not in a hurry to cut interest rates despite pressure from Trump, as stock markets experienced declines. He noted that the effects of the tariffs could result in persistent inflation and that the central bank’s primary job remains to contain these inflationary pressures. As a result, consumers and markets are grappling with heightened uncertainty regarding spending and economic stability.