Wall Street Tumbles After Fed Chair Powell Warns Tariffs May Fuel Inflation, Slow Growth

U.S. stocks plunge across the board following stark warnings from Federal Reserve Chair Jerome Powell that ongoing and proposed tariffs could pose significant challenges to inflation control and economic growth. Speaking Thursday at the Economic Club of Chicago, Powell cautions that the central bank may face a difficult balancing act as protectionist trade measures begin to pressure consumer prices and disrupt global supply chains.

Powell says tariffs—both existing and anticipated—are likely to increase costs for American businesses and households, potentially reversing recent gains in inflation moderation. “We. . .