Federal Reserve Chair Jerome Powell didn’t mince words in his latest press briefing, delivering a series of sharp warnings about the economic dangers linked to President Donald Trump’s aggressive tariff policies. While Powell acknowledged that the U.S. economy is still broadly stable for now, he highlighted signs of increasing vulnerability — much of it fueled by policy uncertainty and rising trade tensions.
On Wednesday, the Fed kept interest rates unchanged for the fourth straight meeting. But both its updated policy statement and Powell’s remarks afterward revealed growing concerns. From weakening business confidence to the rising threat of stagflation, Powell underscored how Trump’s tariff-driven approach could threaten the Fed’s hard-won progress toward its dual goals: stable prices and maximum employment.
Here are the 10 most striking warnings Powell delivered about Trump’s tariff strategy during his post-meeting briefing:
1. Political Pressure Won’t Move the Fed
Addressing Trump’s repeated demands for lower interest rates, Powell firmly defended the Fed’s independence. “We are always going to do the same thing — use our tools to foster maximum employment and price stability,” he stressed. Powell made it clear that political pressure has “no effect at all” on the Federal Open Market Committee’s decisions.