Fed Chair Jerome Powell sees danger ahead for interest rates, tariffs

After years of heightened inflation, the Federal Reserve spent most of 2024 working toward curbing inflation and delivering a soft landing for the U.S. economy. Once inflation began tapering toward the Fed's goal of 2%, the central bank began cutting interest rates to provide relief to borrowers.

However, inflation began creeping up again toward the end of 2024, and mounting economic and political uncertainty have sparked fears of a looming recession.