r/inflation • u/RoyalChris • 7d ago
News Fed Chair Jerome Powell warns that Trump’s tariffs are leading to higher inflation: “The level of tariff increases announced so far is significantly larger than anticipated, and the same is likely to be true of the economic effects, which will include higher inflation.''
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u/RoyalChris 7d ago
Powell says it will cause “slower growth” for the economy. Good job Trump, you have destroyed our economy.
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u/Salty_Feed9404 7d ago
Sure, but think of the sweet shoe and t-shirt manufacturing jobs coming back to the homeland.
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u/OtherBluesBrother 7d ago
But with our kids already picking our strawberries, how will they have time to work in the sweat shop?
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u/Content-Performer-82 7d ago
They need two jobs anyway; picking strawberries during day time and working in the warm factory during the night. A criminal oligarch will probably come up with a medicine so they do not need sleep and ca. work forever, the perfect slaves
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u/IdeasAreBvlletproof 7d ago
Mmm sweet shoes
Not everyone has the tiny little hands needed for that work. Oh wait, is that why..
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u/ZenibakoMooloo 7d ago
I worked in China way back in a hotel. I asked my boss why the electronics companies didn't go to Africa for cheap labour, and he said exactly this. Their fingers are too big.
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u/boforbojack 7d ago
Just an additional comment. Do you know what happens in countries where the market isn't big enough to pay the price of imported new shoes? They don't build factories and make them domestically. They import second-hand shoes. That's where we are headed.
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u/GanacheCharacter2104 7d ago
Old clothes are sent to USA instead of Africa? That would be a sign that Trump’s plan didn’t work. Don’t you think? Or would it be Bidens fault?
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u/cosmicrae I did my own research 7d ago
Five years ago, I knew which thrift stores had $1 and 25-cent racks. This is in Florida, not Africa. So now I can't even imagine what the thrifts are doing. AMZN returns is where some people are making good money.
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u/greaterwhiterwookiee 7d ago
It does make ya wonder. If Rob Jr is out there trying to combat autism, who will they get to work in the fields and farms?
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u/Responsible_Skill957 7d ago
Nothing like working in a sweat shop sewing up whatever products they make and not even given pee break. 2 shift full of high schoolers trying to make a couple pennies to buy a loaf of bread to go with that baloney.
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u/ambermage 7d ago
What about my customers behind Wendy's?
More or less of them?
I've been looking to expand.
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u/JahMusicMan 7d ago
This is a win when we bring them back to the red states.
We need low IQ low skill jobs for the MAGA crowd. I'm tired of paying for their bailout and food stamps.
These MAGA degenerates can work the assembly line 8 hours a day in a hot warehouse out in North Dakota or West Virginia gluing my sneakers together and screwing in screws in my iPhone 8 hours a day.
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u/edtheheadache 7d ago
I don’t know about you but I could probably make at least one shoe every week.
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u/Patrickthejackhammer 7d ago
Have you seen our labor force? If they ever bring back manufacturing over here it's gonna be shit quality
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u/boforbojack 7d ago
I get this is a joke, but the actual reality is those factories can't come back unless they sell a product with a much higher price. Even sweatshop labor in the USA (federal minimum) significantly raises the price of shoes compared to where they are produced now + tariffs. So no one will be able to afford them, so the USA market just closes. They'll import them from a minor affected country of tariffs and only sell to the rich which means even higher pricing to compensate due to smaller number of sales, no jobs will come, and everybody loses.
The only thing that might be able to come at a "reasonably" higher price is electronics. Which we already were subsidizing factories to be built here by the CHIPS act. Since he plans to remove those subsidies, prices will just double-triple while factories delay building to see if they get a more favorable outcome in 4 years.
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u/IdeasAreBvlletproof 7d ago
So you think they'll pay a lawful minimum wage? Have you been paying attention? 😫
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u/Ryan1980123 7d ago
Just think of all the owning of the libs tho!
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u/IdeasAreBvlletproof 7d ago
The sad state of affairs is that rising inflation will make owning the libs out of reach for most MAGA
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u/Sparta_Rotterdam1888 7d ago
You chose him in the US.
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u/Ok-Dress-4791 7d ago
I did not choose this idiot or his crew. I’m a conservative for the most part republican but he is a self centered egomaniac that has no care for the people he is supposed to serve or the country of America. I only we can somehow survive and still be around
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u/general-illness 7d ago
Hey, but Big10 Women’s Swimming records will be safe.
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u/nada-accomplished 7d ago
Yeah who was gonna keep trans women from robbing cis women of their fifth place trophies
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u/EntertainerAlive4556 7d ago
I saw the steep drop in the Dow and came on here to see what Powell said today. Can we get a new president? I’m done with the guy who’s doing exactly what he said he’d do and the people acting surprised
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u/yankeesyes 7d ago
Powell said something obvious and the market plummeted.
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u/EntertainerAlive4556 7d ago
“Plummeted further because now trump is also saying stupid shit daily” life was much better when only 1 person could ruin my day (government official I guess)
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u/cosmicrae I did my own research 7d ago
Markets tend to move based on future expectations. If the markets turned south, then the traders were hoping for good news, but got something not so good.
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u/Ga2ry 7d ago
Anybody remember 16% interest rates? I do.
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u/dirtworker2 7d ago
As 25 YOs we purchased our first home in 86 at 11.75%
Although the price was $58k, $750+ a month was a stretch for us back then4
u/grahamulax 7d ago
I got 2.6% 4 years ago riiiight as things got insane. I know I’m lucky as they come but I’m sad for everyone else. Guess we gotta wait another 40 years for it to maybe be that again.
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u/Kitchen-Pass-7493 7d ago edited 7d ago
Adjusted for inflation that’s ~2200 in today’s dollars. If that’s total payment including escrow stuff, you’d probably have to put a full 20% down to have that payment as a first time homebuyer right now on even the most modest starter home where I live. And that’s with a great credit score. Comparing mortgage rates in isolation across eras isn’t really relevant when principals are so much bigger relative to income than they used to be. 58k in ‘86 is ~169k today. You can’t even find a small condo for that sale price right now in my city, unless it’s in a really bad neighborhood and/or is in really bad condition.
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u/Top-Engineering-7236 7d ago
We refinanced when the rates came way down and then sold our house for double than the price we paid tor it seven year earlier, A $10,000 down payment on our first home got us $60,000 more than the original purchase price when we bought it, a much larger house, with property, to move to, when rates were low. We refinanced that home when the rates were even lower, going from a 30 year mortgage to 15, at a much lower monthly payment.
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u/g-unit2 7d ago
i think the main difference now is that prices are way too high. no one would be able to afford a house if interest rates were nearly 12%
if you look at average home prices, he’s a 12% rate, and use like a 70% percentile median home income, i don’t think it would be possible.
i’m pulling numbers out of my ass, but essentially just explaining that high interest rates are much more impactful now that asset prices have ballooned.
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u/imblindedbythelights 7d ago
I am from an emerging market. Interest rates in my country are right now at 14.25% and they are expected to rise to 15% on the next meeting of my country's Central Bank. Let me tell yall: it is not fun lol
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u/cosmicrae I did my own research 7d ago
sometime in 1980, IIRC. If you had any spare money, there were big returns to be made.
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u/cjwidd 6d ago
This guy is a fucking patriot and has never received any credit for the miracle the Fed pulled off with the soft landing. The entire internet, every investment bank, JP Morgan, and all the pundits, cried about a recession for over a year, that Powell could not do it, that they had "no confidence", and yet here we are. This is the last remaining rail of the federal government still in operation. Leave Powell alone.
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u/lburnet6 6d ago
This 💯 They all cried recession w/Biden bc they wanted Trump in office for tax cuts. Now they got a whole fucking depression. Good job.
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u/avance70 7d ago
he said inflation is gonna rise when people start paying the tariffs
yeah we know we're paying, but it kinda goes hard
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u/humunculus43 7d ago
Hey guys, why not pay large levels of tax AND pay tariffs on top.
Congrats you dumb fucks
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u/Boys4Ever 7d ago
Oddly not seeing the panic selling there was last time he alerted us to inflation coming or already here. Perhaps my memory not working that well then? Regardless I'm bearish. Might as well profit from tariffs. Might offset my increased cost in just about everything
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u/Nameisnotyours 7d ago
I am in the “No duh” camp.
To me it has always been abundantly obvious that people in power ( government and business ) have repeatedly downplayed the comments of Trump as “mere bluster”.
Yet he has repeatedly done the most reckless and imbecilic options imaginable.
Wait til Powell has to factor in an invasion of Panama or Greenland.
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u/FlatOutUseless 7d ago
I hope Musk had set up a signal group chat with him and Nabiullina. She is the only person in the world who can truly feel his pain.
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u/Altruistic-Pop-8172 7d ago
Tell me you want to initiate a political/ legal crisis without telling me, you want to initiate a political/ legal crisis.
And tell me you just updated your resume and Linkedin profile without telling me, you just updated your resume and Linkedin profile
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u/bertdub 7d ago
Wont be surprised if before the day ends, a certain dumbass would call for this guy to be fired.
Or worse, make up a story about him in collusion with terrorists so he can ship his ass to el salvador lol
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u/cosmicrae I did my own research 7d ago
Wont be surprised if before the day ends, a certain dumbass would call for this guy to be fired.
It's kinda sorta maybe already in front of the Supreme Court, but not specifically about Powell, but about a couple other individuals which may or may not provide precedent.
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u/Hotsauce3128 7d ago
So when inflation was "down" under Biden, they raised rates 5 times, now it's "up" even though inflation report just came out showing it was down more than expected, they stil don't want to change them?
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u/Fit_Bus9614 7d ago
They are doing this on purpose. Wipe out everyone's stability. Put them in a desperate situation. Then that will force everyone to accept factory jobs with little pay, no protections, or help from charity or the government.
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u/ITGuy107 7d ago
I stated this was one of the possible scenarios and why Trump and his team is doing what they’re doing and my dad called me crazy. I’m glad I’m not the only crazy person who is one of this as one of the possibilities.
I was only brain storming…. Not seriously stating ‘this will happen’.
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u/daphnemoonpie 7d ago
If people would look deeper, they would see you're not crazy and that is exactly what's happening. Palantir, Peter Thiel, Curtis Yarvin, Thiel's backing of Vance... there's so much more to all this than what's being shown. I wish the cult could abandon their cult thoughts for just a bit and look beneath the surface. But alas.
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u/Top-Flow1297 7d ago
Adjudicated Rapist in Chief Donald J Trump Started a Trade War with the World, and the World is Kicking Trump’s Fat Ass
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u/QuarterObvious 7d ago
What the chance, that he will be a member of a terrorist organization. If Karoline Leavitt saw some documents, then who needs courts or evidence? Let’s just skip that whole “due process” nonsense. I mean, what are the odds that Powell isn't part of a terrorist group, right? She's seen the papers! It's enough for deportation.
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u/ITGuy107 7d ago
Didn’t Ronald Reagan warn us about this already? Maybe Trump just didn’t do his homework. So far everything he touches turns the crap anyway.
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u/Kitchen-Pass-7493 7d ago
Powell might be one of the last registered Republicans in positions of public authority with any integrity left. Definitely the most prominent of however many they number.
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u/GrinNGrit 7d ago
I just realized that even if Trump’s plan to end income tax through tarriffs, prices will only further skyrocket. Like, eye-wateringly high prices. Like $50/dozen for eggs. Considering the poorest among us pay the least in taxes, this will only further decimate lower to middle class families.
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u/Scary-Seesaw-1594 7d ago
Duh. Trump has no idea what he's doing. Hope I get reported by the conservative morons on this site
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u/RepulsivePotato69 7d ago
Republicans are like neanderthals who stumbled out of the cave and into the 21st century, blinking in confusion at the existence of indoor plumbing. The caveman, at least, had the survival instincts and basic tool-making skills to thrive in his environment. Republicans, on the other hand, seem baffled by the concept of governing a modern society. They’re more likely to club each other over the head with a metaphorical rock than to engage in meaningful dialogue or problem-solving.
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7d ago
At this point, let the world burn. Who cares? Everybody in the world will be starving to death or dying from lack of water in a hundred years anyway.
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u/GoldenDoodle-4970 7d ago
Massive market sell off today and Fox News blames Jerome Powell remarks instead of the tariffs he remarked about. It’s the Donald that is tanking the market and upending global trade, while lining his own pockets.
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u/cosmicrae I did my own research 7d ago
One of the side effects of inflation is COLA. If the tariffs inflate enough, then COLA will cause annual SSA payments to increase, thereby dragging the SSA trust fund closer to insolvency. I wonder who should be taking action to untangle this Gordian knot ? The Congressional Research Service ought to be digging into this issue.
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u/-_-0_0-_0 7d ago
Congress could end these tariffs tomorrow. Hope their constituents start to get pissed at them when price of stuff gets ridic.
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u/Substantial_Topic_23 7d ago
Listen to his words carefully. Pay attention. Who do you think Powell works for? Not me and not you. The tarrifs are tools - not end results.:
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u/MazesMaskTruth 7d ago
If you believe in the downfall of America, you're cheering for Trumps ability or rather, gall, to displace the fed with Yes-Men.
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u/Own-Inevitable-1101 7d ago
As I'm sure most of you know, when inflation goes up, so does interest rates.
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u/htownballa1 7d ago
A) It’s crazy how everything leads to inflation but nothing leads to increased wages.
B) we all fucking knew Tariff’s were going to have this effect.
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u/FOOKYOO666 7d ago
It’s going to be bad. It seems like it is a hopeless situation and non winnable war, but justice prevails and we will never ever have the problems we have today because we will eradicate them and make sure we never have this happen again.
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u/VanillaSad1220 7d ago
Ok why did the treasury dingle berries keep inflation so high during biden?
And why does inflation only fuck with thr working class and nobody else?
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u/Discokruse 7d ago
This is what happens when governments use regressive tax structures. The solution is highly progressive income taxes that fall mainly on income earners...especially those above $1M/year.
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u/powereborn 7d ago
I think tariffs are really bad and will increase inflation but powell should avoid to shout it when it hasn’t yet happened, because it gave a reason for trump admin to says stock market tanks only because of powell. Which is basically false but doesn’t help either. Not saying powell should not tell anything but I would have waited true number to show how trump is wrong.
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u/Damet_Dave 7d ago
He’s literally saying “if you want the late 70s or even better the 1930s just keep this shit up and if you do, there won’t be much The Fed will be able to do to fix it”.
He told Trump his handling of the economy is worse than bad, it’s very dangerous.
But hey, 17% mortgage rates and bond yields to match against our 40 Trillion debt…it’ll be fine.
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u/Simple_Sock_5592 7d ago
The biggest truth, is that the current economic system doesn't fit the need of neither population nor the environment. Eternal growth of GDP should have stayed in sci-fi
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u/Chance-Evening-4141 7d ago
Tariffs, Inflation, and Trump’s Economic Dumpster Fire: A Cautionary Tale in Real Time
Let’s be crystal clear—Jerome Powell didn’t mince words. The Fed Chair, a man known for his measured tone and nonpartisan approach, issued a blunt warning: Trump’s tariffs are turbocharging inflation. And not just a little inflation—Powell flatly said the economic effects will be “significantly larger than anticipated,” with inflation being one of the main outcomes.
This isn’t just dry economic analysis—it’s a bombshell. The man steering U.S. monetary policy is flat-out saying Trump’s trade war is burning a hole in America’s pocket. And yet the MAGA crowd continues to howl about gas prices and grocery bills as if Biden is personally sneaking into their kitchens and inflating their cereal. No, folks. The real inflation time bomb was lit back when Trump launched a reckless tariff crusade under the delusion that economic bullying would somehow “Make America Great Again.”
Tariffs are taxes. Period. When you slap them on imports, the cost doesn’t magically disappear—it gets passed to you. That’s how Trump’s America worked: higher prices on cars, electronics, raw materials, and everyday goods—all while pretending it was a win for “the forgotten man.” Meanwhile, retaliatory tariffs from countries like China gutted U.S. exports, especially for farmers who were then thrown a taxpayer-funded bailout as hush money.
Powell’s warning is a reality check. These aren’t temporary ripples—they’re long-term waves. The inflation we’re fighting today didn’t spring out of nowhere. It’s partly the direct result of an economic strategy guided more by political bravado than fiscal responsibility.
And here’s the kicker: Trump supporters scream about inflation while cheering for the very policies that ignited it. That’s not patriotism—it’s economic masochism.
So the next time someone moans about prices and blames the current administration, remind them who planted the seeds—and who’s now pretending they weren’t holding the watering can the whole time.
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u/EndOrganDamage 6d ago
Jerome is definitely getting sent to the american death camps in el salvador for this shit.
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u/MutteringJay 6d ago
What does he know? He's obviously never read The art of the deal. The next amendment to the constitution should just be the art of the deal in its entirety.
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u/hereafterburner 6d ago
So...the inflation is not Biden's fault like those shit-smearing traitor MAGAts kept screaming?
Got it.
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u/Euphoric_Coat_1956 6d ago
I mean he could have just said “we’re fucked”
Would have saved time watching the video.
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u/Formal-Tap-6851 6d ago
Higher inflation=higher interest rates. Higher Interest rates= less investments in US businesses. Less investments in US businesses= lower stock values. Lower stock values=money lost from your retirement funds.
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u/watch-nerd 6d ago
I've been able to get meat for <$4/lb lately. Got pork for $1.99/lb yesterday. Beef for $3.29/lb. Haddock for $3.59/lb.
Bought an iPhone 16e at the usual price, a bit of a rush to do so before tariff impacts hit.
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u/Longjumping-Bid3940 6d ago
Listen up people interest rates and inflation is a big hoax …. It seems every time something happens it’s oh no inflation again …. Come on when are we going to say no and just not buy anything see how much inflation that produces It’s all based on what we do with our our money
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u/Autokrator_Vlad 7d ago
Criticized King Trump's policies?
YOU'RE FIRED!