As the stock took another dive after Trump announced his tariffs on so-called ‘Liberation Day,’ the Fed Chair, Jerome Powell, said the central bank wouldn’t make any moves (e.g., an interest rate cut) until it has a ‘clearer sense of the fallout.’
Powell added: ‘We face a highly uncertain outlook with elevated risks of both higher unemployment and higher inflation, undermining both of the Fed’s mandates of 2 percent inflation and maximum employment.’
‘While uncertainty remains elevated, it is now becoming clear that the tariff increases will be significantly larger than expected,’ he said. ‘The same is likely to be true of the economic effects, which will include higher inflation and slower growth.’
While the global markets tumbled, Trump was spotted driving around his Miami golf course.