Most economists say that Trump's plans to slap tariffs on a wide array of imports, including 25% duties on goods from Canada and Mexico that he partially delayed Thursday, will push up prices and slow growth. But many also expect that tax cuts and deregulation could boost the economy.
Powell said the economy remains mostly healthy despite “elevated uncertainty.” He characterized Friday's jobs report, which showed employers added 151,000 jobs and the unemployment rate ticked up to 4.1%, as in line with the “solid” gains of the past six months.
He also noted that there were signs consumer spending has slowed compared with the healthy gains in the second half of last year, and said surveys of consumers and businesses “point to heightened uncertainty about the economic outlook.”