President Donald Trump’s tariff policies are expected to cause slower economic growth and higher inflation, according to Federal Reserve Chairman Jerome Powell. But he also clarified that the U.S. economy remains “in a solid position.”
Speaking Wednesday at the Economic Club of Chicago, Powell said the level of tariff increases announced so far by the president is “significantly larger than anticipated.”
“The same is likely to be true of the economic effects, which will include higher inflation and slower growth,” Powell said.
The Fed chair stated after his speech that the tariffs would likely move the economy further away from the Fed’s stated goals, which include maximum employment and stable prices, probably for the balance of the year.
Powell’s comments were believed to have helped spur Wednesday’s stock selloff on Wall Street, as the Dow…
