Tariffs: Tariff war to increase inflation in America, Central Bank chief said – ‘The path ahead is difficult’

New Delhi|Tariffs imposed by the Trump administration on various countries have sparked a global trade war and have affected various industries. Now Jerome Powell, head of America’s central bank Federal Reserve, has warned that inflation may increase due to the tariff war. He said that due to the policy changes made in the Trump administration, the problems of the central bank Federal Reserve may increase.

Tariffs may have a permanent impact on the US economy
Speaking at an event in Chicago, Jerome Powell said that the tariffs raised by the Trump administration are much higher than expected and the uncertainty created could have a lasting impact on the economy. Powell said that the government has made a lot of policy changes and we have no experience of what to do about it. It is noteworthy that in America, the central bank Federal Reserve has the responsibility of increasing employment and keeping inflation under control. Powell has warned that the tariff war could have a serious impact on both employment and inflation.

Huge fall seen in America’s stock market
Due to the tariff war, there has been a huge decline in the stock market in America. Nasdaq saw a decline of more than four percent and S&P of more than three percent. Companies like Nvidia have suffered significant losses because the tariffs imposed by America on China will significantly increase the company’s costs. Many other companies have also been affected in the same way. Although President Trump says that the tariffs will have a short-term impact, America will benefit from it in the long run.