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https://www.cnn.com/politics/live-news/trump-tariffs-news-04-04-25/index.html
Jerome Powell warns on Trump’s tariffs: High inflation could be here to stay
Inflation is likely to pick up because of President Donald Trump’s sweeping tariffs, and could remain elevated, Federal Reserve Chair Jerome Powell said Friday.
Powell’s latest comments, his most vivid yet on the subject, come just days after the Trump administration unveiled the sharpest ever escalation in US tariffs on data going back 200 years, Fitch Ratings told CNN. The measures are even steeper than the expansive tariffs deployed under the Smoot-Hawley Act of 1930.
A 10% tariff on all US imports will go into effect Saturday, with even higher tariffs slated for April 9.
The Fed chief said the central bank’s best move amid Trump’s chaos is to keep rates on hold for longer. Fed officials convene again to set interest rate policy on May 6 and 7.
Dow tumbles as tariff anxiety grips Wall Street
US stocks were hit with a steep sell-off Friday, extending the market rout that gripped Wall Street on Thursday.
The Dow tumbled as much as 1,700 points, or 4.27%, Friday morning before pulling back and trading about 1,200 points lower. The broader S&P 500 fell 3.4%, and the tech-heavy Nasdaq Composite sank 3.6%.
Wall Street’s fear gauge, the Cboe Volatility Index, or VIX, surged 40%. “Extreme fear” was the sentiment driving markets, according to CNN’s Fear and Greed index, which slumped to its lowest level this year as investors braced for an escalating global trade war.
“In the near term, we believe the effective tariff rates could be higher still, and without President Trump taking active steps to reduce tariffs over the next three to six months, we are likely to enter a downside scenario, including a meaningful US recession and lower equity markets,” said Solita Marcelli, chief investment officer for the Americas at UBS Global Wealth Management, in a note Friday.
Trump arrives at Florida golf course as global trade war escalates and markets stumble
With a global trade war escalating, President Donald Trump arrived at his golf course on Friday morning about 15 minutes after the US financial markets opened amid a second day of fallout from a new tariff policy that is disrupting the world economy.
The president waved to onlookers as his motorcade turned into the Trump International Golf Club after a short drive from his Mar-a-Lago resort, where he arrived Thursday night. He is expected to remain in Florida, with no public events on his schedule, until Sunday evening.
Split-screen moment: While the president has traveled to Florida most weekends since taking office, his arrival on the golf course on Friday morning offered a remarkable split-screen to the deepening crisis on Wall Street and across the economy in the hours before the latest wave of tariffs are set to take effect at midnight. Those 10% tariffs on countries across the world are set to be followed next week by far larger levies on allies and adversaries alike, including China, Europe and Japan.
Before hitting the links, the president sent a series of a messages on social media about his trade policy, defending his actions and promoting America as a strong place to do business.
No matter where they travel, all presidents are accompanied by the trappings of office and can conduct business from anywhere. On Friday, Trump was doing just that from his golf course, a White House official said, taking calls and speaking to his advisers.
He left the White House on Thursday afternoon to attend a LIV Golf event at Trump National Doral Golf Club in Miami. The golf tournament is almost entirely funded by the Saudi sovereign wealth fund.
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