Tariffs - Will They Affect Inflation?

Interest Rates Held Steady But Could They Generate a Rise in Inflation?

The Federal Reserve held interest rates steady amid concerns over the economic impact of the Trump administration’s tariffs.


 “If the large increases in tariffs that have been announced are sustained,” Fed Chairman Jerome Powell said, “they are likely to generate a rise in inflation, a slowdown in economic growth, and an increase in unemployment.” 


Source: “The Madison Weekly Market Wrap”, May 11, 2025.



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