On April 5, Federal Reserve Chairman Powell stated that the Fed was shocked by the range of tariffs imposed by President Trump, indicating that the impact of tariffs on the economy would be greater than previously thought.

Powell said that the increase in tariffs would clearly far exceed expectations, and the economic impact might be the same, including rising inflation and slowing economic growth. The scale and duration of these impacts remain uncertain. It is reported that Powell previously stated that the inflationary effect of tariffs was likely to be "temporary".

Powell was unwilling to disclose whether he believed the US economy was heading towards a recession, but he acknowledged that the uncertainty of trade policies was putting pressure on businesses, and an increasing number of predictions showed that the risk of economic recession was rising. Powell said he planned to complete his entire term. Powell's term ends in May 2026. (Jinshi)