BlockNews
FOLLOW ON X
  • BITCOIN
  • CRYPTO
    • ETHEREUM
    • RIPPLE XRP
    • SOLANA
    • CARDANO
    • BINANCE BNB
    • DOGECOIN
    • TRON
    • SUI
    • CHAINLINK
    • LITECOIN
  • FINANCE
  • POLITICS
  • MEMECOINS
  • NFT
  • OPINION
No Result
View All Result
BlockNews
  • BITCOIN
  • CRYPTO
    • ETHEREUM
    • RIPPLE XRP
    • SOLANA
    • CARDANO
    • BINANCE BNB
    • DOGECOIN
    • TRON
    • SUI
    • CHAINLINK
    • LITECOIN
  • FINANCE
  • POLITICS
  • MEMECOINS
  • NFT
  • OPINION
No Result
View All Result
BlockNews
Home FINANCE

Powell Warns Trump’s Tariffs Could Prolong Inflation Surge: Here is Why

Michael Juanico by Michael Juanico
April 16, 2025
in FINANCE, OPINION, POLITICS
Reading Time: 4 mins read
3
SHARES
50
VIEWS
Share on XShare in TelegramShare on Reddit
  • Powell warned that Trump’s tariffs could force the Fed to choose between fighting inflation and supporting growth.
  • The Fed is staying cautious for now, with no immediate rate changes planned as it watches how the economy reacts.
  • Tariffs are likely to temporarily boost inflation, while early signs show slower GDP growth in Q1.

Federal Reserve Chair Jerome Powell didn’t mince words Wednesday, hinting that the U.S. central bank might be headed for a tricky balancing act—trying to tame inflation while also supporting an economy that’s starting to lose steam.

Speaking at the Economic Club of Chicago, Powell said things are, well, a bit murky right now. The full effects of President Trump’s tariffs haven’t quite materialized, but already there’s talk of slower growth and prices ticking higher. Not exactly the mix you wanna see.

🇺🇸 FED JEROME POWELL: Higher than expected tariffs likely mean higher inflation 👀 pic.twitter.com/xpNO0M2qkA

— BlockNews (@blocknewsdotcom) April 16, 2025

“We may find ourselves in the challenging scenario in which our dual-mandate goals are in tension,” Powell noted, referring to the Fed’s mission to both keep prices stable and push for full employment. “If that were to occur, we would consider how far the economy is from each goal, and the potentially different time horizons over which those respective gaps would be anticipated to close.”

Caught Between Two Goals

The Fed’s in a weird spot. Normally, you tackle high inflation by raising rates. But if growth is flatlining? You might need to cut. With tariffs potentially pushing prices up (but also slowing the economy), Powell admitted the path forward is a bit unclear.

In the post-speech Q&A, he acknowledged tariffs are “likely to move us further away from our goals,” maybe for the rest of the year. But he also didn’t hint at any immediate moves on interest rates, saying the Fed’s in a “wait and see” mode for now.

Markets weren’t thrilled. Stocks dipped, bond yields fell—pretty typical when the Fed chief sounds even mildly unsure.

Tariffs Are Complicating the Picture

Now, economists—Fed staff included—have long said tariffs usually deliver a one-time bump to prices. But Trump’s latest round of sweeping duties could change that. Some stuff, like electric vehicles, are now facing potential tariffs north of 200%.

Powell said the Fed’s key inflation metric is likely to come in around 2.6% for March, above the 2% target. He warned that tariffs “are highly likely to generate at least a temporary rise in inflation,” though they could end up sticking around longer than expected.

It’ll depend, he added, on how fast those effects ripple through the system—and whether inflation expectations stay anchored or start drifting higher.

Growth Is Slowing, But Not Collapsing

Even though inflation’s a concern, Powell didn’t downplay the slowdown in growth either. Early data for Q1 shows the economy has definitely lost some momentum. He pointed to weak consumer spending (except for car sales), and said that a wave of businesses trying to front-run tariffs by importing early probably won’t help GDP numbers much.

Powell Said Things Are Well a Bit Murky Right Now

Retail sales for March were stronger than expected—up 1.4%—but much of that was folks rushing to buy vehicles before prices rise. According to the Atlanta Fed, GDP might actually show a slight contraction once gold-related trade quirks are adjusted out.

Still, Powell isn’t calling it a crisis. “The economy is in a solid position,” he said, “even if growth slows a bit in the short term.”

Disclaimer: BlockNews provides independent reporting on crypto, blockchain, and digital finance. All content is for informational purposes only and does not constitute financial advice. Readers should do their own research before making investment decisions. Some articles may use AI tools to assist in drafting, but every piece is reviewed and edited by our editorial team of experienced crypto writers and analysts before publication.
Tags: Economic Club of ChicagoinflationJerome PowellPresident TrumpTariffs
Tweet1ShareShare
Michael Juanico

Michael Juanico

Michael is a BSBA Management graduate from Mindanao State University and has been a professional content writer since 2019. He began exploring cryptocurrency in 2021 and has since made blockchain and digital assets his primary focus. For nearly four years, Michael has contributed research and editorial content at Aiur Labs and BlockNews, producing clear and accessible coverage of market trends, trading strategies, and project developments. He is transparent about his personal holdings in Bitcoin, TRON, and select meme tokens, combining writing expertise with hands-on market experience to deliver trustworthy insights to readers.

DON'T MISS THESE! HOT OFF THE PRESS

Fed Rate Cut Odds Spike Ahead of Jerome Powell’s September Decision: Here is Why This is Important
CRYPTO

Fed Rate Cut Odds Spike Ahead of Jerome Powell’s September Decision: Here is Why This is Important

September 2, 2025
What is World Liberty Finance and How Does it Work? Should You Buy WLFI in 2025? 
CRYPTO

What is World Liberty Finance and How Does it Work? Should You Buy WLFI in 2025? 

September 2, 2025
Gavin Newsom Teases “Trump Corruption Coin” in Latest Jab at President Trump
CRYPTO

Gavin Newsom Teases “Trump Corruption Coin” in Latest Jab at President Trump

September 2, 2025
Strategy Expands Bitcoin Treasury: 4,048 BTC Added in $449M Purchase
BITCOIN

Strategy Expands Bitcoin Treasury: 4,048 BTC Added in $449M Purchase

September 2, 2025
VeChain Price Prediction: Can VET Hit $0.035 in September 2025?
CRYPTO

VeChain Price Prediction: Can VET Hit $0.035 in September 2025?

September 2, 2025
Musk’s DOGE Treasury Push: A $200M Dogecoin Fund on the Horizon
CRYPTO

Musk’s DOGE Treasury Push: A $200M Dogecoin Fund on the Horizon

September 2, 2025
Load More

Related News

Fed Rate Cut Odds Spike Ahead of Jerome Powell’s September Decision: Here is Why This is Important

Fed Rate Cut Odds Spike Ahead of Jerome Powell’s September Decision: Here is Why This is Important

September 2, 2025
What is World Liberty Finance and How Does it Work? Should You Buy WLFI in 2025? 

What is World Liberty Finance and How Does it Work? Should You Buy WLFI in 2025? 

September 2, 2025
Gavin Newsom Teases “Trump Corruption Coin” in Latest Jab at President Trump

Gavin Newsom Teases “Trump Corruption Coin” in Latest Jab at President Trump

September 2, 2025
Strategy Expands Bitcoin Treasury: 4,048 BTC Added in $449M Purchase

Strategy Expands Bitcoin Treasury: 4,048 BTC Added in $449M Purchase

September 2, 2025
VeChain Price Prediction: Can VET Hit $0.035 in September 2025?

VeChain Price Prediction: Can VET Hit $0.035 in September 2025?

September 2, 2025
Twitter Telegram Threads

BLOCKNEWS.COM

BlockNews is your premier source for real-time cryptocurrency, blockchain, political and financial market news.

Stay ahead of the herd with BlockNews

RESOURCES

  • About Us
  • Contact Us
  • Editorial Policies
  • Terms and Conditions
  • Privacy Policy
  • Sitemap

DISCLOSURES AND POLICIES

BlockNews provides independent reporting on crypto, blockchain, and digital finance. Content is for informational purposes only and does not constitute financial advice. Sponsored material is always disclosed. By using this site, you agree to our Terms and Conditions and Privacy Policy.

© 2025 BlockNews

No Result
View All Result
  • HOME
  • BITCOIN
  • CRYPTO
    • ETHEREUM
    • RIPPLE XRP
    • SOLANA
    • CARDANO
    • BINANCE BNB
    • DOGECOIN
    • TRON
    • LITECOIN
    • CHAINLINK
    • SUI
  • MEMECOINS
  • POLITICS
  • FINANCE
  • NFT
  • DEFI
  • GUIDES

© 2025 BlockNews