Powell: Tariffs' far exceed expectations', Federal Reserve's progress towards achieving targets may be postponed until next year

Federal Reserve Chairman Powell stated at a press conference that the tariffs implemented by US President Trump on April 2nd exceeded expectations. The current level of tariffs may lead to a slowdown in economic growth and may cause long-term inflation to rise. If the significantly increased tariffs that have been announced continue to be implemented, inflation and unemployment rates may rise, and economic growth may slow down. The impact on inflation may be short-lived, reflected in a one-time change in price levels, but it may also be more persistent, "Powell said. Powell stated that considering the scope and scale of tariffs, the risk of rising inflation and unemployment rates will certainly increase. If tariffs ultimately remain at current levels, the Federal Reserve's progress in achieving its goals may be delayed until next year.