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Fed Chair Jerome Powell directly blamed President Trump's tariffs for potentially causing stagflation – a combination of high inflation, slow growth, and high unemployment. The Federal Open Market Committee (FOMC) lowered its economic growth forecast and raised its inflation projection in March, anticipating the negative impact of trade barriers. Powell's stronger warning comes after Trump imposed higher-than-expected tariffs, although he has since paused them. Despite the Fed's concerns, Trump shows no sign of reconsidering his tariff policies.

Prepared by Christopher Adams and reviewed by editorial team.