President Donald Trump and Federal Reserve Chairman Jerome Powell acknowledged the potential impact of tariffs on the U.S. economy, adopting stances that contrasted with their earlier positions. Following the Fed’s decision to maintain steady interest rates, Powell highlighted the uncertainty tariffs pose for economic growth and inflation forecasts. He emphasized that policy is not on a preset course and will adapt based on employment and price stability goals. Powell suggested that inflation caused by tariffs might be transitory, a term previously retired after post-pandemic inflation surged. Meanwhile, Trump urged the Fed to lower rates to ease the economic impact of tariffs, acknowledging their potential to slow U.S. growth. The situation leaves markets uncertain about how the Fed will respond and how tariffs will influence growth, inflation, and employment. — news from TheStreet