Federal Reserve Chair Jerome Powell stated that President Trump's tariffs are "highly likely" to increase inflation and slow economic growth. Powell's comments, delivered at the Economic Club of Chicago, caused immediate stock market declines; the Dow fell 690 points. While acknowledging a still-solid US economy, Powell indicated the Fed might hold interest rates steady to observe the tariff's impact before adjusting policy. This follows a volatile week on Wall Street, marked by Trump's temporary tariff pause and subsequent increase of tariffs on Chinese goods, triggering retaliatory measures from China.

Prepared by Christopher Adams and reviewed by editorial team.