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US businesses facing cuts from tariffs - Federal Reserve

WASHINGTON, July 18 (KUNA) -- US businesses have been hurt by President Donald Trump's trade policy which has increased tariffs on key products, Federal Reserve Chairman Jerome Powell said Wedneday.
"We hear from our extensive network of business contacts a rising chorus of concerns," he told House Financial Services Committee. "Lots and lots of individual companies have been harmed by this".
But if Trump's policy results in lower tariffs it would be good for American businesses and "would be good for the economy," he said.
"The bottom line is a more protectionist economy is less competitive, less productive. This is a torch we've been carrying around the world for 75 years," said Powell.
The federal reserve has planned to gradually raise interest rates but is faced with the possibility of cutting rates in the instance of weakened demand and higher priced goods.
"The harder issue is you could be seeing higher prices because of tariffs at same time you're seeing lower economic activity, and potentially that would imply higher inflation... If it did it could be very challenging for (monetary) policy," said the Chairman. (end) ak.mt