Powell: Tariffs "far exceed expectations," the Federal Reserve's progress toward its goals may be delayed until next year.

[Powell: Tariffs “far exceed expectations”, and the Fed’s process to achieve its goal may be delayed until next year] On May 8, Federal Reserve Chairman Jerome Powell said at a press conference that the tariffs implemented by US President Trump on April 2 local time “far exceeded expectations”. The current level of tariffs could lead to a slowdown in economic growth and could contribute to higher long-term inflation. "If the announced substantial tariff increases continue, inflation and unemployment could rise and economic growth could slow. The impact on inflation may be short-lived, reflected in a one-off change in the price level, but it is also likely to be more persistent. Powell said. Powell said the risk of rising inflation and unemployment would certainly increase, given the scope and size of the tariffs. If tariffs eventually remain at current levels, the Fed’s progress towards its goals could be delayed until next year.