Jerome Powell, Chair of the U.S. Federal Reserve, warned that "the tariff increases of the Donald Trump administration are being implemented more strongly than expected," adding that "the repercussions may not be temporary and could have more lasting effects on the economy, including rising inflation."
On the 4th, local time, Powell stated during a conference in Arlington, Virginia, that "the scale of the tariff increases observed so far greatly exceeds initial expectations." He added that "the economic impact from this could also be substantial, potentially including rising inflation and slowed growth."
This appears to indicate that the recent reciprocal tariff measures announced by President Trump against major countries such as China could act as a burden on the U.S. economy.
Powell emphasized that "the tariff could significantly stimulate inflation at least temporarily, and its effects may last longer."