In a striking press conference on Wednesday, Federal Reserve Chair Jerome Powell addressed the looming impact of President Donald Trump’s tariffs as the Fed decided to keep interest rates steady. With expectations of rising inflation and sluggish economic growth ahead, Powell clarified the central bank's cautious approach.

Powell emphasized that the Fed will refrain from cutting rates until it fully grasps the ramifications of the tariffs. He noted, "Every forecaster you can name" predicts a substantial rise in inflation, directly linked to Trump’s controversial economic initiatives.

He explained, "Someone has to pay for the tariffs... Ultimately, that cost will land on the consumer." His comments signal potential concerns for everyday Americans, as tariffs trickle down through the supply chain.

In a dramatic exchange earlier that day, Trump publicly berated Powell outside the White House, labeling him as "stupid" and demanding he lower borrowing costs amidst inflation figures lingering at 2.1%, just shy of the Fed's 2% target.

Trump didn’t hold back, suggesting he could do a better job than Powell at steering the central bank while attributing higher costs to Powell’s supposed political motives.

Federal officials projected inflation could soar to 3% by the year’s end and hinted at a rise in the unemployment rate to 4.5%. Growth estimates were also downgraded to just 1.4%, signaling a significant slowdown from the previous year’s 2.5%.

Powell warned that tariff-induced price increases might exert pressure on the economy, stating, "The effects on inflation could be short-lived... or they could persist longer than anticipated." This uncertainty leaves many questioning the future stability of the economy.

Reactions poured in on social media as Powell’s revelations hit the airwaves. One user anticipated Trump’s fury, stating, "Trump’s going to lose his mind when he sees this," while another praised Powell for prioritizing economic health over political pressure.

As the deadline for many tariffs looms large on July 9, the nation braces itself for the turbulent economic storms predicted ahead. Will Trump's tariffs truly backfire as Powell suggests? Stay tuned!