Jay Powell says the customs tariff can put inflation in the Federal Reserve and job objectives

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President Jay Powell said that Donald Trump’s definitions could complicate the Federal Reserve’s ability to control inflation while increasing employment to the maximum.

The Federal Reserve Chairman said on Wednesday that although price lists in the United States aim to “balance” inflation and full employment goals, they need to remember that “without price stability, we cannot achieve long periods of strong labor market conditions.”

Powell said that the president’s tariff that was announced so far was “much larger than expected,” adding that “the same thing is that the same applies to economic effects, which will include higher inflation and slower growth.”

the feeding The chair later added that these economic effects may put the United States’ critics “in the difficult scenario in which our double goals are tension.”

“If this will happen, we will consider the closure of the economy from every goal, and possible different time prospects that are expected to close these concerned gaps,” Powell said in statements about a letter in Chicago.

The dual Federal Reserve State is 2 percent to maintain inflation with a strengthening of “maximum” employment levels.

Many federal reserve officials, including John Williams, head of the Federal Reserve in New York, and Governor Christopher and Er, said – Economic inflation In the coming months, it is possible that the proposed definitions of the administration.

While Walir believes that the impact of definitions will prove a palace, other members of the Federal Open Market Committee that are subject to prices and Powell believes. Trump’s tariff It has increased the chances that inflation would be a longer problem for us consumers.

Recent surveys have shown that consumers and companies expect a strong rise in prices in the near future as new taxes on imports are rippled through the economy.

The Trump administration policies put in place the Federal Reserve in the “WAIT and See” position, after FOMC made a series of discounts during the second half of last year.

The US Central Bank retained its target in federal funds in the period 4.25-4.5 percent this year, as officials said they are in a good position to respond as soon as economic data show the effects of the president’s policies on American companies and families.