Fed Chair Powell Warns Trump Tariffs Could Cause Inflation, Economic Slowdown; California Sues

Federal Reserve Chair's Warning on Tariffs

• ⚠️ Jerome Powell warned that President Trump's tariffs could lead to persistent inflation and an economic slowdown.
• 📈 Powell expressed concern about stagflation, a rare condition where prices rise alongside unemployment.
• 🗣️ Powell's comments prompted a strong reaction from President Trump, who has previously expressed dissatisfaction with Powell's performance and called for his removal.

California's Lawsuit Against Tariffs

• ⚖️ California announced it will file a lawsuit to challenge the Trump administration's tariffs.
• 💰 The state argues it is the world's fifth-largest economy and will lose billions of dollars due to the impact on its tech and agricultural industries.
• 📜 California's legal argument centers on the claim that the tariffs are unconstitutional and that the president's justification of a national emergency is a fallacy, suggesting Congress should have intervened.

International Trade and Meetings

• 🤝 President Trump met with Japanese officials, reporting "big progress" but no specific deal, aiming to avert potential 24% tariffs.
• 🇮🇹 The President is also scheduled to meet with the Prime Minister of Italy, with tariffs expected to be a topic of discussion.
• 🇨🇳 The ongoing trade war with China is highlighted as a critical issue with the potential to bankrupt small and medium-sized US businesses, with no scheduled talks between the two nations.