Elizabeth Warren Gets Fed Chair to Knock Trump Tariffs at Hearing
Senator Elizabeth Warren (D-MA) got Federal Reserve Chairman Jerome Powell to blame President Donald Trump’s policies for negative economic projections during a Senate hearing.
Trump has habitually attacked Powell, invoking his “termination” over Powell’s remarks on the worsening impact of Trump’s tariff policies, and constantly pressuring him to lower interest rates.
But Trump’s pressure campaign hasn’t kept Powell and the Fed from dropping negative predictions based on Trump’s policies, as they did at their last meeting.
At a Senate Banking Committee hearing this week, Ranking Member Warren tore into Trump in her opening remarks by slamming his tariffs and the policies in the so-called “Big Beautiful Bill”:
When he ran for President, Donald Trump repeatedly promised to lower costs on day one. Those were his words. Since Trump became President, families have been more financially stressed than ever. Since January, consumer sentiment has plummeted, household debt and delinquencies climbed. Since January, workers’ worries over layoffs have climbed. Since January, businesses big and small have been paralyzed by uncertainty, and they have hit the brakes on investments and hiring. The cause of these problems has been the chaos caused by one person, President Trump.
Chaotic trade policies, massive cuts to families’ health care coverage to fund tax giveaways to the wealthy, and wholesale deregulation of our financial system that will unleash fraudsters and con men on the middle class.
Trump continues to play his lose-lose game of red light, green light, red light, green light on tariffs. When this administration slaps tariffs on everything from food, clothing, electronics, working families pay the price. This is bad for the middle class and bad for main street. Tariffs like these mean higher prices on essentials for consumers and small businesses, while large corporations and the wealthy find ways to shield themselves from the impact.
She went on to ask Powell about why the Fed’s projections have worsened, and Powell cited “the possible effects in the short-term of tariffs”:
SEN. ELIZABETH WARREN (D-MA): Thank you Mr. Chairman. So, Chair Powell, The Fed released its updated economic projections last week, and I appreciate your summary, but I want to look at the trend lines here.
The Fed’s outlook on inflation, the labor market, and GDP growth have all gotten worse. Compared to your economic projections in December, the latest numbers show the Fed is now projecting higher inflation from 2.5% in December 3.1%. Higher unemployment from 4.3% to 4.5%. Lower economic growth from 2.1% projected just six months ago to 1.4 % that you are now projecting.
Chair Powell, what has changed in the last six months that has caused the Fed to forecast substantially higher inflation, higher unemployment and a lower economic growth than you did in December?
FEDERAL RESERVE CHAIRMAN JEROME POWELL: Some of it is just taking signals from data reports we have seen. Some of it is people working on the possible effects in the short-term of tariffs. We have no view or wisdom of longer-term effects of trade policy. It is not our job. By the way, I should add our forecasts are generally, and in this case are very, very similar to what outside forecasters are.
SEN. ELIZABETH WARREN (D-MA): I understand. I’m just using you as the gold standard here. I know it’s consistent. You mention tariffs as one of the things that has changed over the last six months, Donald Trump has become president and the economy is headed down. Not only does the fed data show slower growth and higher prices this year, it sees slower growth and higher prices over the next two years as well. The Fed sees no long-term boost to the economy or drop in inflation. In other words, no upside to Trump’s chaotic tariff war or other economic policies.
Watch above via the Senate Banking Committee.
