Today's News: Markets Slide Amid Fed Warnings and Tech Fallout from Trump Tariffs
Federal Reserve Chair Jerome Powell warned that President Trump’s new tariffs could significantly raise inflation and slow growth, creating a dilemma for monetary policy.
Photo: Erin Hooley/AP
Overview
Date: April 16, 2025
Topic: Markets Slide Amid Fed Warnings and Tech Fallout from Trump Tariffs
Summary: U.S. and global financial markets fell sharply after Federal Reserve Chair Jerome Powell warned that President Trump’s new tariffs could significantly raise inflation and slow growth, creating a dilemma for monetary policy. Powell’s remarks intensified an already negative market reaction to sweeping U.S. export controls on AI chips, with Nvidia and AMD both disclosing multibillion-dollar write-downs. The Nasdaq led losses, falling over 3%, while gold surged as investors sought safe assets. Analysts and central bankers now see heightened risks of economic downturn and prolonged volatility.
Sources
The New York Times – Stocks Fall as Powell Sees Tariff Challenges and Tech Pulls Back
CNN – Stocks slide as Powell warns of impact of tariffs on the economy
NBC News – Stocks tumble anew as Nvidia and Powell raise alarms over trade policies
Fox Business – Stocks rocked after Fed’s Powell talks tariff impact
The Washington Post – Trump’s tariffs are ‘likely’ to push prices up, Fed chief warns, prompting market slide
The Wall Street Journal – Powell Warns of ‘Challenging Scenario’ for Fed as Trade War Rages
Key Points
All sources emphasize Jerome Powell’s warning that Trump’s tariffs are likely to raise inflation and slow economic growth, creating conflicting goals for the Federal Reserve.
Market indexes plunged, with the Nasdaq down over 3%, the S&P 500 falling more than 2%, and the Dow dropping around 700 points.
Nvidia and AMD announced combined losses exceeding $6 billion due to U.S. export restrictions on AI chips to China.
Investors flocked to safe assets, pushing gold above $3,300 per ounce.
Central banks are expected to delay interest rate cuts amid growing uncertainty.
Powell emphasized the difficulty of balancing inflation control and employment goals under tariff-induced supply shocks.
Unique Highlights
The New York Times notes ASML’s warning about weak demand for its chipmaking tools and details sharp stock declines in Asian semiconductor markets.
CNN provides context on the WTO’s downgraded global growth forecast and describes recent White House investigations into tech and pharmaceutical imports.
NBC News highlights Nvidia’s plans to manufacture AI chips in the U.S. and the White House’s branding of this as “the Trump Effect.”
Fox Business details Powell’s remarks through a pop culture lens and includes sector-specific stock performance (Tesla, Dollar Tree).
The Washington Post emphasizes consumer behavior, such as panic buying before tariff hikes and broader Fed concerns about long-term inflation expectations.
The Wall Street Journal introduces internal Fed debates, noting that some governors (Christopher Waller) would favor rate cuts if recession risks rise.
Contrasting Details
Fox Business is more muted on economic risks, focusing instead on Powell’s comments about waiting for clarity and highlighting some stock gainers.
CNN, The Washington Post, and The New York Times frame Powell’s remarks as stark warnings with strong implications for long-term inflation and slower growth.
NBC News reports that Nvidia’s losses are tied to Trump-era and Biden-era compliance designs, suggesting a longer policy evolution.
The Wall Street Journal uniquely notes Powell may prioritize inflation control over employment, while The Washington Post underscores the Fed’s struggle to balance both.
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