Trump’s strict tariffs will worsen inflation, warns Fed chairman

Federal Reserve Chairman Jerome Powell warned Friday that Trump’s strict tariffs will worsen inflation and lower economic growth. As a result, the Fed won’t change interest rates until the full economic effect is clarified.

In prepared remarks, Powell said, “It is now becoming clear that the tariff increases will be significantly larger than expected. The same is likely to be true of the economic effects, which will include higher inflation and slower growth.”

He added, “Our obligation...