Powell Warns: Tariffs Could Spark Inflation Surge & Job Market Chaos

Fed Chair Jerome Powell drops a truth bomb—protectionist trade policies might backfire spectacularly. Here’s the breakdown:

• Inflation Time Bomb: Tariffs act like a hidden tax on consumers, driving prices up across supply chains

• Employment Roulette: As costs rise, companies face brutal choices—raise prices or cut jobs (spoiler: they’ll do both)

The bitter irony? These ’economic safeguards’ could trigger the very crisis they’re meant to prevent—just in time for election season. Wall Street’s already placing bets on which lobbyists will profit most.

Trump’s Tariffs Risk Inflation Surge and Job Losses

“Perfect Storm for a Recession” Brewing

Alex Jacquez from the Groundwork Collaborative didn’t mince words, sayingThe Federal Open Market Committee (FOMC) echoed this, noting thatThe combined effects are likely to fuel Trump tariffs inflation unemployment.

Powell specifically addressed Trump’s trade policies, warning that:

Donald Trump’s tariffs mean you could suffer higher prices and lose your job AT THE SAME TIME. Forget dolls, families will be forced to make impossible choices between necessities like food, housing, and health care.

Small Businesses and Workers in the Crosshairs

Former Labor Secretary Robert Reich pointed out that 80% of U.S. jobs come from small businesses, which are especially vulnerable to tariffs. He added thatand noted that price hikes on essentials like baby supplies and tools are already squeezing households. Clearly, Trump tariffs inflation unemployment are at the forefront of concerns for small businesses.

Political Fallout and Public Perception

Senator Elizabeth Warren framed the stakes bluntly, statingReich questioned whether voters WOULD connect the dots by the 2026 elections, asking

Meanwhile, the Fed held rates steady at, resisting pressure from Trump to cut. Powell insisted political calls had no influence, affirming