Powell's Inflation Warning Comes Home to Roost Amid Trump Tariffs
The Dow Jones Industrial Average and other major stock indexes have reached record highs since early June, but this doesn't accurately reflect the pressure inflation is placing on consumers and businesses.
Former Fed Chair Jerome Powell had warned about the impact of President Donald Trump's tariffs on inflation. This warning now seems truer than ever as Trump prepares to announce new 10% tariffs on dozens of countries.
The new tariffs come on top of a recent announcement by Trump that imposed tariffs ranging from 10% to 12.5% on 60 trading partners under Section 301 of the Trade Act of 1974.
This quadruple whammy includes energy supply shock, broad-based inflation, AI-driven inflation, and tariffs all contributing to higher prices and inflationary pressures.