The head of the US Federal Reserve predicted an increase in inflation in the country due to Trump's duties

The sharp increase in import duties imposed by US President Donald Trump will lead to a slowdown in the growth of the United States economy and an acceleration of inflation in the country. This was announced on August 4 by the head of the US Federal Reserve System (FRS, central bank) Jerome Powell.

"Although uncertainty remains high, it is now becoming clear that the increase in duties will be significantly more significant than expected. The same can probably be said about the economic consequences, which will include higher inflation and slower growth," he said at the annual conference in Arlington, Virginia, on the Fed's website.

At the moment, the U.S. economy is still in good shape and showing "solid growth," Powell said. However, the forecast for the future is not so optimistic. Currently, the scale and duration of the consequences of the measures introduced by Trump are not yet clear, but it is already clear that their negative impact on the economy inside the country will be protracted.

"Although tariffs are highly likely to lead to at least a temporary spike in inflation, it is also possible that the consequences may be more sustainable," the Fed chairman stressed.

Trump is fighting tariffs with the global economy. Analysis

On April 2, Trump announced large-scale measures: base tariffs of 10% are being introduced for all products supplied to the United States. For Europe, this figure has been increased to 20%, and for China — to 34%. In his speech, the president called April 2 the day when Americans will become rich again. The next day, the Chinese authorities decided to impose retaliatory duties of 34% on goods imported from the United States.

Yuri Ichkitidze, an analyst at Freedom Finance Global, said on April 3 that the introduction of new duties could lead to a slowdown in US economic growth in 2025, as well as provoke an increase in inflation. According to him, the negative effect for the United States is associated with the "boomerang effect" — retaliatory measures and rising prices. Inflation may increase by 1-1.5% this year.