Federal Reserve Warns Trump's Tariffs Will Hinder Inflation Reduction Goals

Chair Jerome Powell highlights tariff-driven inflation as a key challenge, with inflation unlikely to hit the Fed's 2% target until 2027.

Federal Reserve Chair Jerome Powell stated that President Trump's tariffs on Mexico, Canada, and China will delay progress in reducing inflation.
The Federal Reserve's latest economic forecast projects core inflation at 2.8% by the end of 2025, with the 2% target not expected until 2027.
Despite inflationary pressures, the Federal Reserve has opted to hold interest rates steady, citing elevated economic uncertainty.
Markets have experienced volatility, with major indices declining and investor anxiety rising, partly due to the administration's trade policies.
The Trump administration plans to implement reciprocal tariffs in April, further contributing to economic and market uncertainty.