The Trump administration has levied a wide range of tariffs against goods both by China, a longtime U.S. nemesis, as well as allies inside European Union, Canada along with elsewhere. Some of those countries in turn have instituted retaliatory tariffs.
Fed contacts have reported concerns around the issue, with some noting which they are holding back on investment while the trade war escalates. which includes potential wage increases, which the Fed has been watching closely.
Trade uncertainty “may well be” a factor in companies holding back on wage increases, Powell said in response to a question by Sen. Pat Toomey, R-Pa.
“We’ve heard a rising chorus of concern, which currently begins to speak of actual capex plans being put on ice for the time being,” he said.
Powell noted the substantial uncertainty after earlier saying which the U.S. economy otherwise is usually seeing robust growth.
“which’s hard to say what the outcome will be. There’s genuinely no precedent due to which kind of broad trade discussions,” he said. “Hard to know where which comes out. If which results in lower tariffs for everyone, which will be a Great thing for the economy. If which results in higher tariffs across a broad range of traded goods along with services along with remains which way for a longer period of time, which will be bad for our economy along with additional economies, too.”