Federal Reserve Chair Jerome Powell said on Friday that the impact of President Donald Trump's tariffs on the economy and inflation are "significantly larger than expected," but warned it's too soon to decide whether to cut interest rates as a result. Trump, in turn, accused him of "playing politics" and urged him to implement a cut.
Speaking in Virginia, Powell said that the tariffs are "highly likely" to result in an "at least temporary rise in inflation," and warned that it is possible that their effects "could be more persistent," rather than a one-time shock.
