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Jerome Powell Projects Tariff-Driven Price Increases to Persist Into Next Year

Federal Reserve Chair Jerome Powell indicates that tariff-related inflationary pressures will likely continue into 2026 but with a diminishing impact by the year's end.

Summary

Federal Reserve Chair Jerome Powell stated that tariffs will not significantly contribute to ongoing consumer inflation, forecasting a one-time pass-through effect that is expected to diminish by the end of 2026.

Terms & Concepts
  • Tariff: A tax imposed by a government on imported or exported goods, often affecting prices and trade flows.
  • Inflation: The rate at which the general level of prices for goods and services rises, eroding purchasing power.