Fed's Powell Says Trade Tensions Could Lead to Higher Inflation

The video discusses the impact of trade policy on the economy, emphasizing that while trade policy is not directly managed by monetary authorities, it significantly affects economic productivity and global market access. The speaker highlights the benefits of trade, such as increased productivity and market expansion, while stressing the importance of maintaining free and fair trade practices. Potential negative outcomes, like increased protectionism, could harm the economy. Business concerns about higher costs and market loss are noted, though these issues have not yet appeared in economic data. Theoretical impacts include slower growth and higher inflation due to tariffs.

In what ways does the speaker believe trade needs to be managed?

What does the speaker suggest could happen to economic growth if more products are subject to tariffs?