Chair of the Federal Reserve Jerome Powell He said at a conference on Friday that President Donald Trump’s rates are likely to increase inflation and economic growth slowly, saying that the Central Bank will do what he can to maintain inflation in the long term.

President Trump On Wednesday, the rates plans were presented that resulted in a sale of bags and have promoted the retaliation of American commercial partners. The S&P 500 has fallen by about 4% on Friday and more than 6% in the last five days of negotiation, while the industrial average of Dow Jones entered a correction territory, above 10% compared to the maximum in December.

Powell said in his conference on Friday that it is difficult to predict the impact of the rates on inflation and other economic indicators “until there is a greater certainty on the details, such as what will be targeted, at what level and for what duration and the extension of any retaliation of our commercial partners.”

“Although uncertainty is high, it is now clear that rate increases will be significantly larger than expected, and it is likely to be true of economic effects, which will include higher inflation and slower growth.” “The size and duration of these effects are still uncertain.”

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Fed President Jerome Powell said that at least inflation is likely to be temporarily increasing rates. (Anna Moneymaker / Getty Images / Getty Images)

Sad Powell that while the “rates are very likely to generate at least one storm Increased inflationThe effects may also be more persistent. ”

“To prevent the result would depend on maintaining long -term inflation expectations anchored in the size of the effects and time it takes to fully pass at prices,” he said. “Our obligation is to maintain long-term inflation expectations anchored and ensure that a unique increase in the price level does not become a continuous inflation problem.”

Inflation has been stubbornly above the FED 2% destination rate, with the most recent data of the consumer price index (CPI) at 2.8% for February and the preferred metric of the Central Bank, the Personal consumption expenses (PCE) Index, at 2.5%.

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President Trump unveiled the devastated rates as part of his announcement of the “Liberation Day” on April 2. (Chip Somodevilla / Getty Images / Getty Images)

Powell was asked during a question and answer session that followed his speech to society to advance in business edition and the writing of the annual conference in Virginia about the The role of Fed In a time of turbulence in financial markets and economic uncertainty derived from political policies.

“We are promoted by careful thinking and thought and discussion and debate, and the merits of things. We try to keep us as far as we can from the political process, we do not look at political cycles or things like that,” said Powell.

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Rates are taxes on imported goods paid by importing companies, which often pass the highest costs to higher prices. (Photographer: Sam Wolfe / Bloomberg through Getty Images / Getty Images)

“We do not want to be part of the wider discussion about the wisdom of policies that are not assigned to us. We are not responsible for trade policyImmigration policy, fiscal policy, “he said.” So we do not comment, these decisions are made by others, and what we do is use our tools to try to achieve the goals that the Congress assigned us, which is the maximum employment and pricing stability. “

“I like to think that over time we are a source of calm, rational and stability analysis,” added Powell. “The business we are in is providing Financial and macroeconomic stability For the public, this is our purpose. “

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The next Fed policy meeting is in May and Powell said that in terms of the reduction of the Central Bank of the interest rates, “we feel that we do not need to be in a hurry.”