WASHINGTON, April 5 — United States Federal Reserve (US) chairman Jerome Powell said on Friday that "the tariff increases will be significantly larger than expected."
He made the remarks in a speech to the Society for Advancing Business Editing and Writing annual conference in Arlington, Virginia, reported Xinhua.
“While uncertainty remains elevated, 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. The size and duration of these effects remain uncertain
"While tariffs are highly likely to generate at least a temporary rise in inflation, it is also possible that the effects could be more persistent," Powell said.
His remarks came as US stocks were battered by a steep sell-off Friday amid concerns about a global trade war due to President Donald Trump's sweeping tariffs on US trading partners.
The Dow plummeted 5.5 per cent, while the broader S&P 500 dropped 5.97 per cent. The tech-heavy Nasdaq Composite fell 5.82 per cent, now down over 20 per cent from its December peak.
— Bernama
