Powell Warns of Inflation Amid Trump’s Trade War

Federal Reserve Chair Jerome Powell warned of rising inflation and lasting economic damage from President Donald Trump’s escalating trade war, calling recent tariff hikes “significantly larger than anticipated.” Speaking in Chicago, Powell said the Fed is navigating “uncharted waters” as market volatility surges. Wall Street reacted sharply, with the Nasdaq dropping over 4%, led by Nvidia’s 10% fall amid new US export curbs. Meanwhile, Trump remained optimistic about trade talks with Japan, while tensions with China deepened. Beijing responded to steep US tariffs with retaliatory duties, warning that “there is no winner in a trade war.”