Trump Tariffs Add Pressure As Fed Flags Slower Growth, Higher Inflation

The Federal Reserve signaled concerns over rising inflation and slower economic growth, according to Politico. Fed Chair Jerome Powell acknowledged that tariffs are a key driver of inflation. Officials predict GDP growth down in 2025 from last year and inflation rising from previous estimates. The Fed maintained interest rates but still anticipates two rate cuts this year. Powell warned inflation progress may be delayed, complicating future rate decisions. Trump's administration maintains tariffs will strengthen the U.S. economy despite concerns about potential recession risks.