Senator Elizabeth Warren Warns of Economic Strain Due to Trump’s Tariffs
During a recent announcement, Alex Jacquez of the progressive Groundwork Collaborative cautioned the American populace about looming economic troubles. This alert followed a report from the Federal Reserve’s rate-setting board.
Jacquez, who holds the position of chief policy and advocacy officer at Groundwork, interpreted the latest Federal Open Market Committee (FOMC) update as signaling the onset of a potential recession. “Just over three months into President Trump’s second term, families are already feeling the pinch from persistent inflation and a slowing economy,” he commented.
“President Trump’s insistence on continuing his unsuccessful trade policies could plunge working families into severe hardship,” Jacquez added. His background includes advisory roles for both former President Barack Obama and Senator Bernie Sanders.
The FOMC disclosed on Wednesday that the risks of both rising unemployment and inflation have escalated, choosing to maintain the federal funds rate between 4.25-4.5%. This decision marks the third consecutive meeting without changes, following reductions last year.
Despite President Trump’s recent push for a rate reduction, he has temporarily halted his plans to remove Fed Chair Jerome Powell. However, this could change should economic conditions worsen, as reported by The Associated Press on Wednesday.
At a press briefing, when questioned about the influence of President Trump’s demands for lower rates, Powell emphasized, “It doesn’t affect our operations at all. We focus solely on the economic data, future outlook, and risk balance,” according to the AP.
If the Fed opts to lower rates, it might reduce other borrowing costs like those for mortgages, auto loans, and credit cards, though this outcome is not certain.
Powell also noted that sustained significant tariff increases could lead to higher inflation, diminished economic growth, and increased unemployment.
Senator Elizabeth Warren highlighted the adverse effects of Trump’s tariff policy on social media, particularly pointing out the potential for both job losses and increased costs.
“Donald Trump’s tariffs could lead to both higher prices and job losses simultaneously. Instead of worrying about luxuries, families might soon have to choose between essentials such as food, housing, and healthcare,” Warren posted online.
In an online article, former Labor Secretary Robert Reich reflected on the economic pressures faced by American voters. “Last November, the predominant reason voters supported Trump was his promise to reduce costs. Despite pulling back on some tariffs and pausing others amid negotiations for trade deals, the current tariffs are already straining family budgets,” Reich wrote.
He pointed out that the raised prices affect a range of products, from baby essentials and laundry detergents to paper goods and tools. Reich emphasized the particular vulnerability of small businesses to tariff policies, noting, “This is troubling for American workers since small businesses, which typically employ fewer than 500 people, account for 80% of the U.S. workforce. This could lead to higher unemployment rates,” he speculated, suggesting that both price increases and job losses might occur soon. “The critical question remains whether consumers and workers will recognize Trump as the root of these issues and remember by the November 2026 midterm elections.”
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An economic reporter, Dax Everly breaks down financial trends and their impact on Americans’ daily lives.