Tariff war will increase inflation in America, the head of the central bank said - the way forward is difficult

The tariffs implemented by the Trump administration against many countries have led to an international trade war, and the same has impacted numerous industries. Now Jerome Powell, the President of the central bank Federal Reserve of America, has cautioned that inflation can rise as a result of the tariff war. According to him, the policy adjustments by the Trump administration can aggravate the issues of the central bank Federal Reserve.

Speaking at an event in Chicago, Jerome Powell said that the tariffs increased by the Trump administration are much more than expected, and the uncertainty created by this can have a permanent impact on the economy. Powell said that the government has made a lot of policy changes, and we have no experience with what to do about it. It is worth noting that the central bank Federal Reserve in America, is responsible for increasing employment and keeping inflation under control. Powell has warned that the tariff war can have a serious impact on both employment and inflation.

Due to the tariff war, the stock market in America has seen a huge decline. Nasdaq saw a decline of more than four percent, and S&P saw a decline of more than three percent. Companies like Nvidia have suffered a lot because the tariff imposed by America on China will significantly increase the company's cost. Similarly, many other companies have also been affected. However, President Trump says that there will definitely be a short-term impact due to the tariff, but America will benefit from it in the long run.