US Federal Reserve Chairman Jerome Powell warned that Donald Trump’s sweeping reciprocal tariff policy is likely to increase inflation, despite the President’s earlier promises to lower prices upon taking office. Speaking at an event hosted by the Economic Club of Chicago last night, Powell noted that the announced tariff hikes are significantly larger than expected. He warned that the economic consequences such as higher inflation and slower growth are likely to follow.

        Powell’s remarks sharply contrast with Trump’s statements. During a press conference with Salvadoran President on Monday, Trump claimed he had already solved inflation, pointing to the inflation rate dropping to 2.4 percent in March, a six-month low.