Fed Chair Powell Faces Dual Threats As Tariffs Stir Inflation And Recession Fears

Federal Reserve Chair Jerome Powell is confronting conflicting pressures as Trump’s sudden tariff hikes threaten to both slow growth and raise inflation, according to The Wall Street Journal. Business leaders and investors warn the economy could slide toward recession, which would normally warrant rate cuts. But rising import prices from tariffs could accelerate inflation, limiting the Fed’s ability to ease policy. Analysts warn rate cuts may be ineffective given the structural nature of the uncertainty and inflationary pressures created by tariffs.