Fed chair says tariffs could drive inflation as Trump calls for interest rate cuts

President Trump posted to Truth Social calling for an immediate cut to interest rates moments before Federal Reserve Chair Jerome Powell spoke in Arlington, Virginia, Friday

Powell suggested Trump's tariffs were higher than expected and could lead to higher inflation and slow economic growth

While uncertainty remains elevated, it is now becoming clear that tariff increases will be significantly larger than expected

And the same is likely to be true of the economic effects, which will include higher inflation and slower growth

Speaking to business journalists, Powell acknowledged the strength of the U.S. economy, saying the economy is in a good place, pointing to labor market data

But he largely made note of uncertainty as substantial changes are happening in U.S. policy under the Trump administration as it relates to immigration, trade, fiscal policy and regulation

The Fed is taking a wait and see approach on how the changes work out with Powell saying the Fed is well to wait for greater clarity before making any rate changes Powell comments came

moments after Trump took to Truth Social, calling for immediate rate reductions, saying this would

be a perfect time for Powell to cut interest rates. Energy prices are down, interest rates are down

inflation is down, even eggs are down 69 percent, and jobs are up, all within two months

a big win for America. Cut interest rates, Jerome, and stop playing politics

Last month, the Fed kept interest rates unchanged. Central bankers are scheduled to meet again

in early May. Straight Arrow News has been following Trump's tariffs closely this week

from immediate impacts to global reaction and what comes next. You can find our continuing coverage by downloading the Straight Arrow News app

or by visiting us online at san.com