Trump tariffs put Fed’s jobs and inflation goals at risk, Powell says

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president Jay Powell warned that the definitions of Donald Trump are likely to offer the Federal Reserve goals in maintaining prices and unemployment in choice, and stressed the US Central Bank’s focus on inflation.

The President of the Federal Reserve said on Wednesday: [Trump] The administration is implementing major changes in politics, especially trade, which is now the focus axis. The effects of this are likely to transfer us away from our goals. “

Although price lists in the United States aim to “balance” their goals of maintaining inflation near 2 % and increasing employment to the maximum, they will need to remember that “without price stability, we cannot achieve long periods of strong labor market conditions.”

Powell also said that the president’s tariff that was announced so far was “much greater than expected,” adding that “it is likely that it is true in economic effects, which will include higher inflation and slower growth.”

American stocks extended a sale that started earlier in the day as the Federal Reserve Chair occurred, as the S& P 500 index fell by more than 2 percent.

Powell said that Trump’s tariff may put our critics in the United States “in the difficult scenario in which our double goals are tension.”

“If this will happen, we will consider the closure of the economy from every goal, and possible different time prospects that are expected to close these concerned gaps,” Powell said in statements about a letter in Chicago.

Many federal reserve officials – including John Williams, Chairman of the Federal Reserve in New York and Governor Christopher Waller – said that inflation will rise in the coming months on the back of the proposed definitions of the administration.

While Waller believes that the impact of definitions will prove a palace, other members of the Federal Open Market Committee that define prices and Powell chairs believe that Trump’s tariff has increased the possibility of inflation to be a longer problem for American consumers.

The preferred personal consumption expenses index of the Federal Reserve increased at an annual pace of 2.5 percent in February, higher than the central bank’s goal.

Recent surveys have shown that consumers and companies expect a strong rise in prices in the near future as new taxes on imports are rippled through the economy.

The Trump administration policies put in place the Federal Reserve in the “WAIT and See” position, after FOMC made a series of discounts during the second half of last year.

The US Central Bank retained its target in federal funds in the period 4.25-4.5 percent this year, as officials said they are in a good position to respond as soon as economic data show the effects of the president’s policies on American companies and families.