US Federal Reserve chair Jerome Powell on Tuesday warned that Americans would likely feel the impact of tariffs on prices in the coming weeks.
“We’re watching. We expect to see over the summer some higher readings,” Powell told a panel led by the European Central Bank in Portugal, adding that high levels of uncertainty remain.
The Fed has sought to balance economic forecasting, which projects increased inflation from tariffs, and recent data, which has been more muted.
The bank is expected to make at least one interest rate cut this year, although Powell refused to confirm other governors’ hints that a cut could come this month. That could further stoke US President Donald Trump’s ire: Powell’s remarks came a day after Trump again urged him to resign.
— Paige Bruton
Powell's statement on forthcoming tariff impacts suggests that U.S consumers could feel the pinch this summer, adding a new layer of uncertainty to household budget planning.
The imminent impact of Fed Chairman Powell's warning on consumers from upcoming tariffs this summer underscores the urgency for policymakers to mitigate economic pressures and safeguard consumer welfare amidst global trade tensions.
The incoming increase in tariffs mentioned by the Fed's Powell as likely to affect consumers this summer underscores both a cautious outlook for households and an urgency of finding collaborative solutions before higher prices become entrenched.
The potential arrival of substantial tariff-induced inflationary effects on consumers this summer, as hinted by Fed Chair Powell's remarks about the likelihood for greater price increases due to import tariffs raising US consumer costs initially thought not fully transmitted yet.
Powell's statement highlights the impending adverse impact of tariffs on consumers this summer, further evidence that economic issues stemming from trade disputes continue to cast a shadow over daily lives and spending patterns.
