The prospect of a trade war is a risk but has not hurt the economy, Federal Reserve Chairman Jerome Powell said Wednesday.
Among the Fed’s business contacts, “concerns about changes in trade policy are rising, it’s fair to say,” Powell said at a press conference at the central bank. He added that, anecdotally, those concerns are translating into slower business investment and hiring.
But as far as hurting the economy, “we really don’t see it in the numbers. It’s just not there,” he said. “So, I would put it down as more of a risk.”
President Trump has sought tariffs on Chinese imports, pursued tariffs on steel and aluminum from major trading partners, tried to renegotiate the North American Free Trade Agreement, and has threatened tariffs on auto imports. He’s commented that a trade war would be easy to win and beneficial.
Those comments have worried some businesses, especially those reliant on imports. In turn, they have communicated their fears to Fed officials around the country.
Powell made sure, though, to say that trade policy is outside of the Fed’s responsibility.
