Powell: Trump's tariffs were significantly larger than the Fed expected

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12 min ago

Powell: Trump's tariffs were significantly larger than the Fed expected

From CNN's David Goldman

Federal Reserve Chairman Jerome Powell speaks at the SABEW Annual Conference Society for Advancing Business Editing and Writing Annual Conference in Arlington, Virginia, on April 4.

Manuel Balce Ceneta/AP

Federal Reserve Chair Jerome Powell said the central bank was taken aback by the scope of the tariffs President Donald Trump put in place.

That will mean the economic impact of the tariffs will be greater than previously believed, he said at the Society for Advancing Business Editing and Writing Annual Conference.

“It is now becoming clear that the tariff increases will be significantly larger than expected,” Powell said in opening remarks at the event. “The same is likely to be true of the economic effects, which will include higher inflation and slower growth. The size and duration of these effects remain uncertain.”

Powell last month said there was a good chance the inflationary effect of tariffs would be “transitory,” as was inflation following Trump’s imposition of tariffs in his first term.

But Trump has announced tariffs on $2.5 trillion of imports in his second term. In his first term, he imposed tariffs on just $380 billion worth of goods.