Federal Reserve Chair Jerome Powell issued an alarming warning about President Trump's tariff policies.

Trump’s 'Liberation Day' tariffs on imports have heightened tensions with China, leading to retaliatory tariffs and market turmoil. Investors are increasingly anxious as historic drops in the Dow reflect the fear of prolonged trade wars.

Powell highlighted that the scale of tariff increases was unexpected, warning it would cause rising inflation and hinder economic growth. Following his comments, the stock market saw a significant selloff, revealing investor panic.

Trump rebutted Powell's remarks, claiming the Fed Chair was undermining the economy. The confrontation heightened tensions between the White House and the Fed, with calls for Powell's removal echoing in political circles.

The stock market suffered severe declines post-Powell's warning, shaking investor confidence. Companies face increased input costs, threatening earnings and impacting industries reliant on global trade.

Powell emphasized the Fed’s need for caution amidst evolving tariff conditions. Future inflation pressures and economic decisions loom large as stakeholders wait for forthcoming changes in trade dynamics.

As tariffs shape the economic landscape, Powell’s warning paints a troubling future. With the risks of stagflation evident, the impact of these policies will be closely monitored in the coming months.