Federal Reserve chair Jerome Powell warns of stagflation.
Transcript:
FEDERAL RESERVE CHAIR JEROME POWELL IS BACK IN PRESIDENT TRUMP’S SIGHTS. ON THURSDAY, THE PRESIDENT POSTED TO TRUTH SOCIAL THAT POWELL’S “TERMINATION CANNOT COME FAST ENOUGH.”
TRUMP, WHO HAS CRITICIZED POWELL FOR NOT CUTTING INTEREST RATES QUICKER, WROTE “JEROME POWELL OF THE FED, WHO IS ALWAYS TOO LATE AND WRONG, YESTERDAY ISSUED A REPORT WHICH WAS ANOTHER, AND TYPICAL, COMPLETE ‘MESS!”
ON WEDNESDAY AT AN EVENT FOR THE ECONOMIC CLUB OF CHICAGO, POWELL SAID THE TRUMP ADMINISTRATION HAS EXECUTED “VERY FUNDAMENTAL POLICY CHANGES” AND THE NEWLY ENACTED TARIFFS ARE “SIGNIFICANTLY LARGER THAN ANTICIPATED.”
“WE MAY FIND OURSELVES IN THE CHALLENGING SCENARIO IN WHICH OUR DUAL-MANDATE GOALS ARE IN TENSION,” POWELL SAID.
POWELL SAID THE ADMINISTRATION’S CHANGES HAVE PUT THE CENTRAL BANK INTO UNCHARTED WATERS, PLACING THE RISK OF STAGFLATION BACK ON THE TABLE.
STAGFLATION OCCURS WHEN HIGH INFLATION, SLOW ECONOMIC GROWTH AND HIGH UNEMPLOYMENT OCCUR SIMULTANEOUSLY.
POWELL WAS FIRST APPOINTED FED CHAIR BY TRUMP IN 2018 AND WAS LATER REAPPOINTED BY PRESIDENT JOE BIDEN IN 2021. HIS CURRENT TERM ENDS IN MAY 2026.
THAT’LL DO IT FOR YOUR DAILY BRIEFING. FROM NEW YORK CITY, I’M KELSEY BARBERIO WITH THESTREET.
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