by Austin Denean
The National News Desk
WASHINGTON (TNND) — Tensions between the White House and the Federal Reserve are increasing after Fed chair Jerome Powell warned the central bank could have less flexibility to maneuver with interest rates due to aggressive tariff policy from the president and resulting trade wars.
Economists have been sounding alarms that the aggressive tariffs put into place by Trump — an across-the-board 10% tax on imports, Chinese goods with a tariff of 145%, Mexican and Canadian products at 25%, along with imported vehicles and auto parts, steel and aluminum facing a 25% tariff — is putting the economy at risk by raising the odds that prices will have to increase as businesses adjust to higher costs and could slow growth as consumers’ budgets are stretched with inflation still over the Fed’s 2% target.