The Federal Reserve on Wednesday voted to hold interest rates steady while Chairman Jerome Powell warned that tariffs and trade wars are creating inflationary pressures.
“If the large increases in tariffs that have been announced are sustained, they’re likely to generate a rise in inflation, a slowdown in economic growth, and an increase in unemployment,” Powell said at a news conference.
Powell also said that the economic picture in the United States is unclear. He said he does not know “which way this will shake out” whether to be concerned or not about U.S. economic growth.
“It’s really not at all clear what it is we should do,” said Powell.
The Fed’s vote on Wednesday will keep interest rates at 4.25 percent to 4.5 percent, where they have remained since December after some cuts to interest rates last year.
President Donald Trump has placed tariffs on dozens of…
