The chairman of the US Fed Reserve showed the mirror to Trump, said- American tariff may increase inflation

Trump tarifs impact: US President Donald Trump has imposed reciperook tariff on 57 countries of the world as per his election promise. Meanwhile, US Federal Reserve Chairman Jerome Powell (Jerome Powell) said on Friday that the tariff announced by President Donald Trump is expected to increase inflation and slow down the economic growth of America. He said that Federal Reserve will focus on keeping the price hike temporary.

Powell said that tariffs and their influences are more than expected on the economy and inflation. He said that there is a lot of apprehension of the tax imposed on the import on the import, but there is a lot of apprehension of increasing the temperament in inflation, but the effects are also expected to be more permanent. The head of the Federal Reserve said in his speech in Arlington, Virginia, “It is our obligation… to ensure that the increase in the price level does not become a problem of a permanent inflation.

Not expected to cut interest rates
Powell’s focus on inflation is an indication that the Federal Reserve will keep its major interest rate in the coming months at about 4.3 per cent. Due to this, investors of the US stock market can be disappointed, who are now expecting 5 cuts in interest rates this year.

Tariffs can weaken the economy
Economists have speculated that tariffs can weaken the economy. This will probably danger the new recruitments and raise prices. In case of this, the Federal Reserve can cut interest rates to strengthen the economy or also increase the rates to deal with inflation. However, from these comments of Powell, it seems that the Federal Reserve will focus mostly on inflation.