The Globe and Mail reports in its Saturday, April 5, edition that U.S. Federal Reserve Chairman Jerome Powell, facing pressure from President Donald Trump to lower interest rates, stated that the government's global tariffs are larger than anticipated and may contribute to higher inflation while slowing economic growth. The Globe's triple bylined item led by Rita Trichur reports that Mr. Powell emphasized that assessing the tariffs' impact will take time due to uncertainties about which imports will be affected and the potential retaliation from key trading partners like Canada, complicating the economic outlook and the Fed's policy decisions. The Fed is grappling with the impact of Mr. Trump's unpredictable trade policies on the U.S. economy, complicating its dual mandate of controlling inflation and maximizing employment. Trade shocks hinder economic activity while pushing up prices, forcing policy-makers to decide between cutting interest rates to boost the economy or maintaining or raising them to combat inflation. Mr. Powell had indicated in recent appearances that the Fed was in no rush to lower interest rates further given inflation in recent months that was more stubborn than expected.