US Fed Chair Jerome Powell says the Trump administration’s expansive new tariffs will likely lead to higher inflation and slower growth.

The most far-reaching version of Trump’s strategy would raise the effective, or average, tariff on U.S. imports to about 20%, comparable to the heavy import duties the nation imposed in the 1930s and that contributed to the Great Depression, Zandi said. Before Trump took office, the average U.S. tariff rate was about 3%.

Jerome H. Powell, chair of the Federal Reserve, says the central bank’s “obligation” is to ensure that a “one-time increase in the price level does not become an ongoing inflation problem.”

Federal Reserve Chairman Jerome Powell warned Friday that Trump's strict tariffs will worsen inflation and lower economic growth. As a result, the Fed won't change interest rates until the full economic effect is clarified.

Here's what big names in business and economics have been saying: Business Roundtable. Joshua Bolten, the CEO of Business Roundtable, an association that represents more than 200

Fed Chair Jerome Powell said Friday he expects President Donald Trump's tariff policy to hike prices and slow economic growth, while noting that key economic indicators "still show a solid economy."

President Donald Trump has announced far-reaching new tariffs on nearly all U.S. trading partners — including a 34% tax on imports from China and 20% on the European Union, among others.

The plan includes a 10% baseline tax on imports from all countries and higher tariff rates on dozens of nations that run trade surpluses with the United States.