Powell warns tariffs are likely to increase inflation

Federal Reserve Chair Jerome Powell has expressed concern that current U.S. tariffs are expected to cause a temporary increase in inflation, impacting financial markets and economic growth. Concerns about tariffs and inflation Jerome Powell, chairman of the US Federal Reserve, has warned of tariffs increasing inflation. He highlighted the potential impacts on economic growth at a recent event. "The tariff increases announced so far are significantly larger than anticipated and it is likely that the economic impact will be the same, including higher inflation and slower growth." - Jerome Powell, Chairman of the US Federal Reserve Powell discussed how tariffs could lead to higher inflation, influencing the Federal Reserve's policy decisions. The development follows previous trade disruptions under President Trump's leadership. Market volatility and crypto industry sentiment The announcement caused volatility in the stock and bond markets. This uncertainty is reflected in investors' concerns about the possibility of a change in monetary policy, as discussed in Christopher Waller's analysis. The economic impacts include declining consumer and business sentiment. Investors fear slowing growth due to rising inflationary pressures from tariffs. Impact on cryptocurrencies and regulatory needs The volatility of the cryptocurrency market has also skyrocketed, with major coins such as Bitcoin falling in price. Powell acknowledged investor risk aversion is impacting digital asset positions. Powell's comments on crypto regulation emphasize the need for a regulatory framework. Traditionally, the impact of tariffs signals potential adjustments in financial markets and regulatory approaches.