Fed's Powell says tariffs could lead to inflation, economic slowdown
Federal Reserve Chair Jerome Powell on Wednesday cautioned that the central bank could face a "challenging scenario" of managing both accelerating inflation and a slowing economy brought on by the impact of President Trump's tariffs.
In written remarks at the Economic Club of Chicago, Powell reiterated that the Trump administration's tariffs are "significantly larger than anticipated."
"The same is likely to be true of the economic effects, which will include higher inflation and slower growth," he added.
AI Overview
The US dollar index has recently reached a new three-year low, trading around 99.5 on Monday (was 108.5 in January). This decline is attributed to a combination of factors, including concerns about the US economic outlook and recent changes in economic policies. Specifically, the Trump administration's new tariff policies and the potential for further tariffs have weighed heavily on investor sentiment, causing investors to sell US assets and seek safer alternatives.
When the knowledgeable and non-emotional Fed Chief Powell is confused about what is happening and makes a statement as he made today (see above), and important countries around the world are starting to shy away from the Dollar (basic and main currency worldwide for the last century), you know that our country is losing the strength it has had for the last 90 years.
Trump is effectively (through incompetence) destroying this country to the point that the end result will be irreparable.
Facts are facts and blindness-by-choice will not change the outcome.
The last time something like this happened was 1500 years ago with the Roman empire. Much of what is happening now is what happened then.
AI Overview
The Roman Empire's fall was a multifaceted process driven by internal weaknesses and external pressures, ultimately leading to the collapse of the Western Roman Empire in 476 AD.
Here's a breakdown of key factors:
Internal Weaknesses:
Federal Reserve Chair Jerome Powell on Wednesday cautioned that the central bank could face a "challenging scenario" of managing both accelerating inflation and a slowing economy brought on by the impact of President Trump's tariffs.
In written remarks at the Economic Club of Chicago, Powell reiterated that the Trump administration's tariffs are "significantly larger than anticipated."
"The same is likely to be true of the economic effects, which will include higher inflation and slower growth," he added.
AI Overview
The US dollar index has recently reached a new three-year low, trading around 99.5 on Monday (was 108.5 in January). This decline is attributed to a combination of factors, including concerns about the US economic outlook and recent changes in economic policies. Specifically, the Trump administration's new tariff policies and the potential for further tariffs have weighed heavily on investor sentiment, causing investors to sell US assets and seek safer alternatives.
De-Dollarization: What Would Happen if the Dollar Lost Reserve Currency Status?
Could countries around the world ditch the dollar in 2025? Countries like Russia, India, China, Brazil and Malaysia, among others, want to set up trade channels using currencies other than the almighty dollar.When the knowledgeable and non-emotional Fed Chief Powell is confused about what is happening and makes a statement as he made today (see above), and important countries around the world are starting to shy away from the Dollar (basic and main currency worldwide for the last century), you know that our country is losing the strength it has had for the last 90 years.
Trump is effectively (through incompetence) destroying this country to the point that the end result will be irreparable.
Facts are facts and blindness-by-choice will not change the outcome.
The last time something like this happened was 1500 years ago with the Roman empire. Much of what is happening now is what happened then.
AI Overview
The Roman Empire's fall was a multifaceted process driven by internal weaknesses and external pressures, ultimately leading to the collapse of the Western Roman Empire in 476 AD.
Here's a breakdown of key factors:
Internal Weaknesses:
- Political Instability:
Frequent succession crises, civil wars, and the rise of ambitious military leaders destabilized the empire.
- Social Decay:
The rise of a wealthy elite, increasing inequality, and a decline in traditional Roman values weakened the social fabric.
- Economic Decline:
Inflation, heavy taxation, and the decline of trade hurt the Roman economy.