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S&P 500
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137 days

Fed Chair Powell says tariffs likely to cause inflation to rise, could be persistent

1. Powell warns tariffs may increase inflation and slow growth. 2. S&P 500 dropped 4% on tariff announcement, over 6% in five days. 3. Inflation exceeds Fed's 2% target; CPI at 2.8%, PCE at 2.5%. 4. Tariff impacts remain uncertain; larger than initially expected. 5. Fed remains focused on controlling long-term inflation expectations.

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FAQ

Why Bearish?

The announcement of higher tariffs has historically led to market volatility and declines, as seen during past tariff escalations.

How important is it?

Tariffs directly impact inflation and growth, influential factors for the S&P 500's performance.

Why Short Term?

Short-term market reactions are typically swift; this includes reactions to new tariffs and economic uncertainty.

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