In a rare and pointed acknowledgment, Federal Reserve Chair Jerome Powell publicly linked higher consumer prices to tariffs imposed during the Trump administration, underscoring how past trade policies continue to affect American households.
Speaking at a recent press briefing, Powell said that total Personal Consumption Expenditures (PCE) prices rose 2.8% over the 12 months ending in September, with core PCE — which excludes volatile food and energy costs — also up 2.8%.
“The readings are higher than earlier in the year as inflation for goods has picked up, reflecting the effects of tariffs,” Powell noted. The remark drew attention for directly connecting Trump-era trade measures to the ongoing price pressures Americans feel in supermarkets and stores.
Economists have long debated the extent to which tariffs on Chinese imports and other goods contributed to inflation spikes during and after Trump’s presidency.
Powell’s comment provides rare confirmation from the Fed that these policies are materially affecting the economy.
While inflation has cooled somewhat in recent months, Powell’s acknowledgment highlights the lingering impact of tariffs on consumer prices and raises questions about the long-term costs of protectionist trade measures.
