U.S. Federal Reserve Warns: Trump's Tariffs Driving Inflation Higher!

The Federal Reserve has maintained interest rates but issued a stark warning about the impact of President Trump's tariffs on inflation. In its decision on March 19, Fed Chair Jerome Powell highlighted that the tariffs are contributing to rising prices, complicating the central bank's efforts to achieve its 2% inflation target. While the Fed projects inflation to reach 2.8% this year, Powell emphasized that these tariff-induced price increases are expected to be temporary. Despite this outlook, the uncertainty surrounding the tariffs is significant. Powell noted that the economic landscape is muddled, with both inflation and growth facing opposing pressures. The Fed's latest projections indicate a downward revision in economic growth to 1.7% for the year, while inflation expectations have risen due to the added costs from tariffs on imports.