Powell speech, stocks fall: Fed chair concerned about impact of Trump tariffs

Federal Reserve Chair Jerome Powell warned Wednesday of rising economic uncertainty related to President Donald Trump’s tariffs, warning that they have affected major U.S. stock indexes Speaking at the Chicago Economic Club — in an interview with Raghuram Rajan (giáo Booth of the University of Chicago and former Reserve Bank of India governor Độ) — Powell claimed the announced trade measures were larger than expected and would likely lead to higher inflation and weaker growth. The market reacted immediately after Powell’s statement near the end of the trading session. The Dow Jones Industrial Average fell 690 points, or 1.7%. The S&P 500 fell 2.2%, while the Nasdaq Composite fell the most, closing down 3%.

Investor sentiment came under pressure after chipmaker Nvidia unveiled. The company reported a $5.5 billion charge related to new export restrictions to China imposed under the Trump administration. The announcement heightened market fears, exacerbating the impact of Powell’s caution on growth and inflation. What is the Fed’s view on interest rates Powell explained that the Federal Reserve will adopt a “wait and see” approach before changing interest rates. He cited the need for greater clarity on the economic impact of current trade policies The remarks were Powell’s first public comments since the White House paused some reciprocal tariffs last week (một notable move not to impose tariffs on China Quốc). The pause in tariffs has spurred the market to recover. Shares soared after the announcement, recovering from initial losses related to earlier trade measures. However, Powell’s comments suggest that the overall economic outlook remains uncertain due to the scale of the policy changes. Why did March retail sales soar despite economic concerns? In contrast to market nervousness, new data from the U.S. Census Bureau shows a spike in retail activity. March sales rose more than 1.4%, marking the biggest monthly gain in more than two years. Analysts attributed the increase in part to consumers making purchases before anticipating price increases due to tariffs.