US President Donald Trump is facing criticism not only from all the countries of the world on his tariff policy. On the one hand, the US state of California has filed a case against the Trump government, while the US Central Bank, Fed Reserve President Jerome Powell has warned of heavy inflation. Trump’s decision has started a trade war globally, which is being felt in many industries in America. In such a situation, the Fed Chairman said on Wednesday, April 16 that policy changes under the Trump administration have put the Federal Reserve in unchartered Watters.

Giving a speech in Chicago, Powell said that the level of tariff growth announced by the Trump administration is “much larger than the estimate” and uncertainty on the issue can cause permanent economic loss. Powell said, “These are very basic policy changes… There is no modern experience of how to think about it.”

Fed has been tasked to promote full employment and control inflation. But Powell warned that Trump’s tariffs are in danger of both those goals. According to the latest data, the American economy remains in good condition.

In his speech, Powell mentioned a slow economy. But at the same time he said that “inflation is likely to increase because tariffs are adopting their way and some part of those tariffs is to be paid by the public.” He also mentioned “instability” in markets in “high uncertainty”.

Shock on the US stock market shock

The volatility started with the tariff war is visible on Wall Street where the Nasdaq fell more than four percent, S&P more than three percent and Dow Jones fell more than two percent. If you talk about a special share, then NVIDIA got the biggest shock. In fact, after Trump’s war with China, the US has banned sending semiconductor chips to China, if you have to send, then a special license will have to be taken. When NVIDIA revealed its major costs, its stock recorded a decline of more than 10 percent.

Also read: Bad ‘trapped Re Trump’ on tariff? This big state of America has filed a case against the government, know the reason

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