Trump said in a social media post this would be the "perfect" time for the central bank to cut rates, but inflationary impact of tariffs could be an issue.

Jerome Powell says that "the impact of tariffs will be greater than expected" and there is a risk of "more inflation and slower growth," causing markets to sink even further.. The trade war unilaterally launched by the United States against the rest of the world has shaken the markets and evaporated trillions of dollars,

The Federal Reserve's fight against inflation just got more complicated as President Donald Trump's tariffs could push up inflation and increase the chances of a recession, economists said.