Federal Reserve Chairman Jerome Powell addresses economic concerns a day before the implementation of President Donald Trump’s 10% base tariff rate on dozens of countries.

WHICH PRODUCTS WILL SEE HIGHER PRICES FROM TRUMP’S TARIFFS ON CANADA AND MEXICO?

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On Wednesday, Powell acknowledged that there was much uncertainty surrounding the scale at which tariffs would impact inflation. However, he said that while Trump’s tariffs will lead to inflation, it will be more “transitory.”

Trump’s tariffs are expected to spark stagflation, which consists of weak growth and high inflation. The Feds’s usual remedy of cutting interest rates to address weak growth could exacerbate the inflation rate.