‘Trump’s going to lose his mind’: Fed chair tells truth about tariffs

As authorities anticipate higher inflation and slower economic growth in the upcoming months, Federal Reserve Chair Jerome Powell corrected remarks regarding President Donald Trump’s starvation on Wednesday.

Powell stated at a news conference after the Fed’s decision that the central bank is delaying rate cuts until it has a better understanding of the effects of tariffs. He emphasized that patience is possible given the economy’s current health, but he also pointed out that every forecaster you can name is forecasting a significant rise in inflation as a result of Trump’s core economic policies.

Because the tariffs must be paid by someone, and that someone will be someone in the chain I described, which includes the manufacturer, exporter, importer, retailer, and eventually someone who incorporates it into a product of some sort or just the buyer, Powell explained.

The cost of the tariff must be paid at the end, even though people will be trying to avoid bearing the expense throughout that chain. And the final customer will bear some of it, he added.

Powell: According to everyone I know, tariffs will cause inflation to rise significantly in the upcoming months. A portion of the tariffs will be borne by the consumer as someone must pay for them. We anticipate that.IvS7VXe pic.twitter.com/4jp

Just hours before, Trump, who had just announced his massive tariffs at the beginning of April, called Powell a fool in front of reporters outside the White House. Citing modest inflation data, Obama has repeatedly urged Powell, whom he promoted to the role during his first term, to reduce borrowing costs. In April, inflation was 2.1%, nearly meeting the bank’s 2% target.

Trump said he would do a far better job than these individuals and indicated on Wednesday that he should appoint himself to the central bank.

You probably won’t cut today, to be honest. We had no cuts, whereas Europe got ten. I’m not sure, but I suppose he’s a political person. Trump stated earlier Wednesday that he is a political figure who is not intelligent, but he is causing significant financial losses for the nation.

He’s not even very political, in my opinion. I believe he despises me, but it’s okay, you know. He ought to. Trump continued, “I call him every name in the book in an attempt to get him to do something.”

Federal officials estimated that by the end of the year, inflation would reach 3%. Additionally, they predict that growth will fall to 1.4%, little less than half of last year’s 2.5% growth rate, and that the unemployment rate, which is currently at 4.2%, will rise to 4.5%. However, in line with a forecast from March, the central bank stated that they expect at least two interest rate reductions by the end of the year.

This year’s tariff increases are probably going to drive up costs and hurt the economy. A temporary change in the price level could have short-term consequences on inflation. Powell emphasized the uncertainty, adding that it’s also possible that the inflationary impacts might be more enduring.

Powell’s comments regarding Trump’s tariffs, which are set to expire on July 9 due to the president’s halt on numerous countries, sparked a lot of social media activity.

One commenter commented, “Trump is going to go crazy when he sees this,” and expressed relief that Powell is refusing to give in to Trump’s demands. One man’s ego and sentiments shouldn’t be allowed to influence the economy.

Powell is telling it like it is, according to another user.

FACTS DO MATTER! Someone remarked, “Trump is definitely going to [poop emoji] his pants.”