His remarks come amid growing unease in financial markets as the impact of Trump's latest round of tariffs on key trade partners continues to unfold.
Federal Reserve Chair Jerome Powell on Friday rebuffed President Trump's call for the central bank to immediately cut interest rates — warning that the administration's sweeping new tariffs are likely to push inflation higher and slow economic growth. Powell acknowledged the strength of the current US economy but emphasized that the Fed is navigating a "highly uncertain outlook" following Trump's announcement Wednesday of 10% tariffs on all imports, alongside even steeper reciprocal measures for key trading partners. "Our obligation is to keep longer-term inflation expectations well anchored and to make certain that a one-time increase in the price level does not become an ongoing inflation problem," Powell told a room of business journalists in Arlington, Va., on Friday. 4 Federal Reserve Chair Jerome Powell said the Trump administration's sweeping new tariffs are likely to push inflation higher. Getty Images "We are well positioned to wait for greater clarity before considering any adjustments to our policy stance. It is too soon to say what will be the appropriate path for monetary policy." While the Fed waits, JPMorgan raised its likelihood of the US economy entering a recession before the end of the year to 60%. The nation's largest lender had previously put the chances of a recession at 40% the "Liberation Day" announcement of tariffs on Wednesday. "Disruptive US policies have been recognized as the biggest risk to the global outlook all year," JP Morgan's chief economist Bruce Kasman wrote in a note to clients on Friday. "The latest news reinforces our fears, as US trade policy has turned decisively less business-friendly than we had anticipated." Moments before Powell took the podium, Trump urged the Fed boss to "stop playing politics" and slash interest rates in light of recent economic data showing a decline in…