But policymakers, including Powell, have warned that tariffs could raise prices. The extent of the price increase will likely be determined by the rollout of the levies and how consumers and businesses respond.
Ahead of Powell’s speech on Friday, Donald Trump took to his Truth Social account to insist that his tariff policy would not change despite the market reaction and called on Powell to act.
“This would be a PERFECT time for Fed Chairman Jerome Powell to cut Interest Rates,” he wrote. “He is always ‘late,’ but he could now change his image, and quickly.”
“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.
