Furthermore, Powell needed to see more hard data that the tariffs are having nation-wide implications on the economy before acting as such with respect to influencing monetary policy.
“More than anything, I would worry in the longer run where this is going,” said Powell. “If the end place we get to is lower tariffs, then that would be good–trade generally supports productivity and higher incomes.
“If this inadvertently goes to a place where we have widespread tariffs for a long time in a more protectionist world, that’s going to be bad for the United States economy.”
Trump Reiterates Unhappiness with Rates
U.S. President Donald Trump has been a vocal opponent of the Fed’s rate-hiking measures and he communicated his discontent once again following the announcement. While President Trump was quick to point out that the rate hike was a result of the strong economic data backed by a low unemployment rate, he was even quicker to denigrate the rate hike, saying that there were other ways to address the economic growth other than increasing rates.
“Unfortunately they just raised interest rates a little bit because we are doing so well. I’m not happy about that,” the president said at a press conference in New York on Wednesday. “I’d rather pay down debt or do other things, create more jobs.”
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