Trump Tariffs May Force Fed To Choose Between Controlling Inflation And Boosting Economic Growth, Powell Warns

Federal Reserve Chair Jerome Powell warned Wednesday that tariffs imposed by President Donald Trump force the Fed to face conflicting goals, according to CNBC. In a speech to the Economic Club of Chicago, Powell said the central bank may have to choose between fighting inflation and supporting growth. The Fed aims to maintain price stability and full employment, but economists warn that tariffs pose risks to both goals despite an inconsistent link to inflation. Powell said tariffs are likely to cause at least a temporary rise in inflation, with longer-term effects depending on their magnitude, duration, and the stability of inflation expectations.