Former President Donald Trump publicly criticized Federal Reserve Chair Jerome Powell after Powell warned that tariffs may contribute to higher inflation and decelerate economic growth.
Powell’s comments, which highlighted the potential economic consequences of using tariffs as a trade tool, appeared to trigger Trump’s response. The former president has long been a vocal supporter of tariffs, especially on Chinese goods, asserting that they protect U.S. industries and job markets.
In recent public remarks, Powell emphasized concerns that increased tariffs could exacerbate inflationary pressures, leading the Fed to potentially adjust its monetary policies accordingly. He also noted that trade restrictions might disrupt supply chains and limit consumer choice, ultimately impacting the broader economy.
Trump, who has frequently clashed with the Federal Reserve during and after his presidency, dismissed Powell’s assessment, suggesting that the Fed chair was out of touch with the realities of international trade and U.S. economic policy goals.
The exchange adds to ongoing debates around the effectiveness and consequences of protectionist economic measures as policymakers and economists weigh their impact on inflation, growth, and global trade relations.
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