Powell said the Fed faces a "highly uncertain outlook" because of the new reciprocal levies the president announced Wednesday

Summary

Fed Chair Jerome Powell warned that Trump’s new tariffs will likely raise inflation and slow growth, creating a “highly uncertain outlook.”

Speaking in Arlington, Va., Powell said the Fed will hold off on interest rate moves until the effects are clearer.

While Trump pushes for rate cuts, Powell stressed the need to keep inflation expectations anchored.

Powell acknowledged current economic strength but cited growing consumer anxiety and elevated 2.8% core inflation.