US tariffs likely to cause higher inflation, slower growth

The tariffs introduced by President Donald Trump have increased the risk of higher unemployment and will likely cause higher inflation and slower growth, Federal Reserve Chair Jerome Powell said Friday.

“It is now becoming clear that the tariff increases will be significantly larger than expected,” Powell told an event in Virginia in prepared remarks.

“The same is likely to be true of the economic effects, which will include higher inflation and slower growth,” he said, adding that it was “too soon” to consider making changes to US monetary policy.