Powell: Tariff-Driven Inflation Expected to Rise in the Coming Months

Federal Reserve Chair Jerome Powell stated at a press conference that Fed policymakers expect inflation in goods prices to rise over the summer as Trump’s tariffs begin to affect American consumers. He pointed out that the impact of tariffs on the goods supply chain takes time, as many of the products currently being sold by retailers were imported months before the tariffs took effect. Powell said, “So we are starting to see some effects, and we expect to see more of these effects in the coming months. We have indeed observed price increases in certain related categories, such as personal computers and audiovisual equipment, which can be attributed to the tariff hikes.”