Federal Reserve Chairman Jerome Powell warned of rising inflation risks in the U.S. due to new tariffs, triggering fluctuations in the stock market.
Powell Highlights Inflation Risks
At an event hosted by the Economic Club of Chicago on April 16, 2025, Powell stated that unprecedented tariffs threaten U.S. economic stability. He predicted potential inflation and slower growth, which led to market fluctuations.
Markets Under Pressure: Dow Dips 690 Points
The stock markets reacted negatively to Powell's remarks: the Dow fell by 690 points, S&P 500 down 2.3%, and Nasdaq 3.4%. Treasury yields dropped as investors retreated to safer assets.
Market Expectations and Possible Consequences
The Federal Reserve remains cautiously observant, awaiting further clarity before policy adjustments. Powell noted that increased tariffs may lead to higher inflation and slower economic growth.
Thus, Jerome Powell's warning about inflation risks underlines the seriousness of current economic conditions and market volatility, which may affect future investment strategies.
