Powell Warns Tariffs Drive 30-40% Core Inflation US Economy

Recent economic analyses highlight the significant impact of tariffs on rising inflation in the United States and globally. Federal Reserve Chair Jerome Powell attributed 30% to 40% of the nation's core inflation to tariffs, underscoring their crucial role in sustained price increases beyond volatile food and energy costs. Supporting this, forecasts for the June Personal Consumption Expenditures (PCE) Price Index indicate inflation is rising, influenced by tariffs imposed under President Trump's administration, with core PCE inflation expected to remain steady at 2.7%, above the Federal Reserve's 2% target. Globally, a Swiss survey reveals widespread public awareness of tariffs, with 70% expecting price increases and negative effects on domestic companies due to global customs policies. Additionally, trade leaders anticipate an August 1 deadline for tariff adjustments, with ongoing negotiations affecting Southeast Asian countries facing varied tariff rates, reflecting the complex international trade environment. Together, these perspectives illustrate how tariffs continue to exert upward pressure on prices, affect market stability, and challenge economic policy worldwide.