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Federal Reserve Chair Jerome Powell said Wednesday that he expects President Donald Trump’s tariffs to lead to further inflation.
Powell made the comments during an event hosted by the Economic Club of Chicago, where he spoke about the state of the U.S. economy.
“Tariffs are highly likely to generate at least a temporary rise in inflation,” he said. “The inflationary effects could also be more persistent. Avoiding that outcome will depend on the size of the effects, on how long it takes for them to pass through fully to prices, and, ultimately, on keeping longer-term inflation expectations well-anchored.”